Annual Report 2010 Key Figures Key Figures of Share We Make Our Way by Planning the Right Steps at the Outset

ANNUAL REPORT 2010 KEY FIGURES KEY FIGURES OF SHARE WE MAKE OUR WAY BY PLANNING THE RIGHT STEPS AT THE OUTSET.

KEY FIGURES

INCOME STATEMENT

2010 2009

Rental income € m 164.3 177.0 EBITDA € m 139.4 141.9 Operating result (EBIT) € m 183.3 3.0

Net result before taxes (EBT) € m 75.8 – 134.5

Consolidated net income € m 43.8 – 134.7

attributable to the owners of the parent € m 45.4 – 76.9 Operating cash flow € m 120.9 120.5 Capital expenditure € m 326.7 274.9

BALANCE SHEET

2010 2009

Total assets € m 4,379.5 4,310.6 Stated value (equity) (incl. minority interests) € m 1,659.9 1,729.2 Long and short term financial liabilities € m 2,125.2 1,976.5 Net debt € m 1,766.6 1,472.3 Gearing % 106 85 Equity ratio % 38 40 Equity-to-fixed-assets ratio % 44 49 Net asset value € m 1,641.8 1,559.0 Net asset value (NNNAV) € m 1,664.9 1,612.1

PROPERTY PORTFOLIO

2010 2009

Total usable space (excl. parking, excl. projects) sqm 1,476,802 1,518,180 Gross yield investment properties % 5.8 6.4 Book value of properties € m 3,612.2 3,515.8

KEY FIGURES KEY FIGURES OF SHARE

KEY FIGURES OF SHARE

2010 2009

Rental income / share € 1.88 2.05 Operating cash flow / share € 1.38 1.40

Undiluted earnings per share € 0.52 – 0.89

Diluted earnings per share € 0.52 – 0.89 NNNAV/share € 18.95 18.47 NAV/share € 18.69 17.87

1) Price (key date)/NNNAV per share – 1 % – 37 – 57

MULTIPLIERS

2010 2009

P/E ratio (KGV) 23 – 9 Price/cash flow 9 6 Ø EV/EBITDA 18 14

VALUATION

2010 2009

Market capitalisation (key date) € m 1,046 689 market capitalisation (annual average) € m 809 555 Stated value (equity) (incl. minority interests) € m 1,659.94 1,729.20 Ø Enterprise Value (EV) € m 2,575.7 2,020.5 Net asset value (NNNAV) € m 1,664.89 1,612.10

2010 2009

number of shares (31.12.) pcs. 87,856,060 87,258,600 Ø Number of shares pcs. 87,333,896 86,141,113 Ø price/share € 9.3 6.5

Closing price (31.12.) € 11.91 7.90 Highest price € 11.95 11.88 Lowest price € 7.01 2.35

1) before deferred taxes

ISIN: ATOOOO641352 / REUTERS: CAIV.VI / BLOOMBERG: CAI:AV

WE NEVER LOSE SIGHT OF THE THINGS OUR PORTFOLIO CAN ACHIEVE. Sustainability and quality are the watchwords in property usage at CA Immo. Future-proof real estate can be let for years ahead, with reputable international companies signing up as tenants whatever the usage type. For the CA Immo Group, this approach guarantees secure revenue for the long term, and thus the scope for decisions that will shape the company’s future.

RENTAL INCOME BY MAIN USAGE

Other 10 %

Office 66 %

Commercial and storage 8 %

Residential 6 %

Hotel 8 %

Retail 2 %

6 THE RIGHT STEPS

WE ARE CAREFUL ABOUT WHERE WE DO BUSINESS – AND WHERE WE DON’T. Austria, Germany and the neighbouring states to the east (including Poland, the Czech Republic, Slovakia, Hungary and Romania) constitute the core region in which CA Immo is committed. The CA Immo Group is steadily building a profile in this area of vast opportunity in the European tradition. The company’s aim is to maintain a long-term stock of high quality real estate whilst organically accumulating assets across the region.

CA IMMO GROUP BY REGION

Book value as at Forecast as at 31 December 2010 1 January 2011

Austria 20 % 14 % Germany 60 % 42 % Eastern/South Eastern Europe 20 % 44 %

7 WE DO NOT JUMP AT EVERY CHANCE THAT PRESENTS ITSELF, ONLY THOSE THAT WE HAVE EVALUATED WITH CARE. Project development is a field with great revenue opportunities; the CA Immo Group has maximised the potential for value creation by acquiring considerable land reserves and implementing high profile urban development projects. The medium-term goal is to bring about a balanced business mix in which investment properties make up 80 % and development accounts for 20 %.

8 THE RIGHT STEPS

OUR ACQUISITIONS ARE GUIDED BY OUR STRATEGIC CONCEPT. In 2007/2008, the CA Immo Group enhanced its profile in Germany with the acquisition of the Vivico Group. The takeover introduced investment properties with long-term letting agreements and significant inner city development sites to the portfolio. The acquisition of Europolis AG, which became effective in 2011, has facilitated the integration of high quality investment properties in Eastern Europe with a value of € 1.5 bn. The move also brought an end to the company’s expansion plans; from now on, the Group will focus on building its image as a high-end supplier of office properties whilst effecting a strategic withdrawal from peripheral markets and products.

DISTRIBUTION OF BOOK VALUE INCOME PRODUCING PROPERTIES BY MAIN USAGE

Office 74 %

Retail 2 %

Hotel 6 %

Residential 7 % Commercial and storage 7 %

Other 4 %

9 WE THINK OF OUR SHAREHOLDERS. +€183 m EBIT Earnings rose significantly in 2010, and the CA Immo Group is poised to maximise its earning power over the years ahead.

10 THE RIGHT STEPS

WE ALSO THINK OF FUTURE GENERATIONS. Transparency, integrity and a long-term approach have always been cornerstones of the CA Immo philosophy, and the last few years have illustrated the importance of reliability in the real estate business. Focusing on future generations means planning, building, operating and utilising for the long term – essential qualities that will be decisive on the competitive markets of the future. The CA Immo Group’s main development projects are already being realised in compliance with green building standards.

11 CA IMMO COMPANY PROFILE

CA IMMO: A REAL ESTATE COMPANY

that generates its revenue from the rental, development and sale of commercial real estate. The company’s core market is Central Europe.

A SPECIALIST IN SUSTAINABLE OFFICES

with a full service range covering everything from land development to property management. In all of its activities, CA Immo seeks to ensure economic, environmental and social sustainability.

A PROPERTY OWNER WITH STRONG OUR VISION DEVELOPMENT EXPERTISE As the leading property investment company in The core expertise of the CA Immo Group is focused Central Europe, we are the partner of choice for equity on two business areas: the management of investment and outside capital providers, customers, employees properties and project development, creating everything and the general public. In our business segment, from high quality buildings to entire city districts. we are successfully setting standards of quality, transparency and fairness.

OUR AIM

Our goal is to generate long-term value from real estate, provide long-term benefits to our shareholders and tenants and use resources responsibly in all our activities.

12 CONTENT CONTENT

14 EDITORIAL 46 MANAGEMENT REPORT 16 REPORT OF THE SUPERVISORY BOARD 46 The history of CA Immo

19 ONLINE SERVICES 47 Holdings and funds 49 Economic environment

20 STRATEGY 2011 52 Property market Austria 54 Property market Germany 57 Property market Eastern Europe 59 Property Assets 62 Portfolio strategy 24 INVESTOR RELATIONS 63 Segment report for Austria 65 Segment report for Germany 25 Share 69 Segment report for Eastern and South Eastern Europe 27 Shareholder structure 75 Property valuation 29 Financial Calender 2011 78 Results 86 Outlook 87 Supplementary report 88 Personnel CORPORATE 30 90 Research and Development GOVERNANCE 91 Value Management 30 Management Board 92 Risk Management Report 32 Supervisory Board 35 Corporate Governance Report 41 Remuneration Report 101 CONSOLIDATED FINANCIAL STATEMENTS

104 Consolidated Statement of Comprehensive Income CORPORATE SOCIAL 44 105 Consolidated Statement of Other Comprehensive Income RESPONSIBILITY 106 Consolidated Statement of Financial Position 108 Consolidated Cash Flow Statement 110 Statement of Changes in Equity 112 Consolidated Segment Reporting 116 Notes to the Consolidated Financial Statements 205 Declaration of the Managing Board 206 Auditor’s Report 208 FINANCIAL STATEMENTS 213 TABLES AND ANALYSES 222 General overview of properties

Cover in front 238 GLOSSARY KEY FIGURES 242 DISCLAIMER/IMPRINT KEY FIGURES OF SHARE 243 INDEX

EDITORIAL

FOREWORD BY THE MANAGEMENT BOARD

The Management Board (left to right): Dr. Bruno Ettenauer, Wolfhard Fromwald, Bernhard H. Hansen

DEAR SHAREHOLDERS AND READERS, offer its shareholders a portfolio that is much stronger in terms of its earnings power, and one which ideally com- For the CA Immo Group, the year 2010 was as eventful plements the company's growth-oriented development as it was productive. Two major transactions – the re-inte- activities in Germany. The transaction was completed at gration of CA Immo International and the acquisition of the turn of the year, and the acquisition will be reflected Europolis AG – have enabled us to consolidate our plat- in the interim financial statements for 31 March 2011. form significantly. Having met our operational targets for 2010, we can look confidently ahead to 2011 on a sound Re-integration of CA Immo International footing. The second major transaction was successfully concluded in November 2010: our subsidiary CA Immo Interna- Acquisition of Europolis tional AG, which had been listed separately on the stock The main event of last year was undoubtedly the acqui- exchange, has now been re-integrated. The delisting of sition of Europolis AG, which was agreed in June. In ta- CA Immo International, enacted by means of a voluntary king over this real estate group, which was established in takeover bid and subsequent merger with CA Immobilien 1990, CA Immo is acquiring property assets worth around Anlagen AG, has enabled us to streamline the Group € 1.5 bn, mainly in Eastern and South Eastern Europe. structure and thereby introduce greater flexibility regard- The portfolio essentially comprises investment properties ing the allocation of capital within the CA Immo Group. in the 'core' CEE regions of Poland, the Czech Republic By focusing the CA Immo Group's capital market pres-

and Hungary; these markets account for just over 70 % of ence into a single listed share, we can also offer investors the portfolio's value. a clearer and more comprehensible profile.

We are certain that the acquisition of Europolis, with a Operating targets achieved portfolio that rates highly in terms of both quality and The main objectives for 2010 were gainful sales (espe- cash flow, will go a long way towards enhancing the va- cially of development sites), stabilisation of the occupan- lue and revenue of the CA Immo Group over the long cy rate and the realisation of development projects on term. With Eastern Europe constituting a core market for schedule. the Group, we believe that this is the right time in the property cycle to be making long-term investments in the As regards sales, we comfortably exceeded our original region. Thanks to Europolis, CA Immo will be able to target of € 200-250 m with total sales of € 322.4 m. These

EDITORIAL

sales made a major contribution to the result, both in the these positive developments were counteracted by a de- form of sales profits and through revaluation gains as a re- cline in rental income of around – 7.1 % on the previous sult of sales agreed but not yet concluded. Sales efforts year; the main reason for the decrease was the loss of re- concentrated on development projects and sites intended venue from investment properties sold in 2009. The va- for development. In this way, we were able to release si- luation result was clearly positive at € 46.7 m, mainly as gnificant capital that had been tied up in non-income pro- a consequence of the specific aforementioned sales as ducing assets. At the same time, the sales profits thereby well as upward valuations linked to progress on projects generated revealed the value embedded in the develop- and partial completions. ment sites. As a result of these developments, we posted an EBIT of Although the lettings market presented us with serious € 183.3 m, the highest earnings before interest and taxes challenges in 2010, we were able to conclude lease con- in the history of the company. The financial result has tracts relating to 170,000 sqm in total. Particularly worthy improved thanks to lower charges from the valuation of of note was the agreement reached in December 2010 to interest-rate hedges compared to the previous year. Fol- let 32,000 sqm of floor space at the Lände 3 site on Erd- lowing the losses of the past two years, the overall result berger Lände to Österreichische Post AG. for 2010 returned to positive territory; net income after minorities was € 45.4 m. During 2010, CA Immo repeatedly demonstrated its ability to realise even the most complex development pro- Upward trend for the CA Immo share jects on schedule and in compliance with high quality Over recent months, the development of the CA Immo criteria. To give one example, the Nord 1 project – an share price has been highly encouraging; it was estab- office building with floor space of around 34,000 sqm in lished in the double digit range by the start of 2011. Al- the Frankfurt Europaviertel – was completed in October though the discount to NAV has been sharply reduced, and handed over to the tenant BNP Paribas; shortly before the current price is still 35 % below the NAV, which the end of the year, the property was sold to Union Invest points to significant potential for further improvement of under the terms of a forward sale agreement. The punc- the CA Immo share. tual handover of phase one of Tower 185 (which makes up 33,000 sqm of an approximate total of 100,000 sqm) to Outlook for 2011 the tenant PricewaterhouseCoopers was another mile- We expect earnings to carry on rising significantly in stone in 2010. 2011, provided the economic environment continues to improve. In particular, we believe the expected contribu- Positive annual result tion to earnings from Europolis makes a return on equity

The annual result was indicative of the widespread nor- of at least 5 % a feasible target for 2011. We also strive for malisation of market conditions that took place during a similar increase in the NAV. Provided that our targets the course of 2010. One area directly impacted by the are reached, the Management Board has every intention mood of cautious optimism is the real estate investment of proposing to the Ordinary General Meeting for 2011 market. As a result, we have also succeeded in conclud- the first time payment of a dividend of around 2 % of ing a series of sales at advantageous prices. However, NAV.

Vienna, March 2011 The Management Board

Bruno Ettenauer Wolfhard Fromwald Bernhard H. Hansen (Chief Executive Officer)

REPORT OF THE SUPERVISORY BOARD REPORT OF THE SUPERVISORY BOARD

Another key event alongside the Europolis acquisition was the amalgamation of CA Immo International AG with CA Immobilien Anlagen AG following last year's voluntary takeover bid; the operational integration of Vivico within the CA Immo Group, the development of a sustainability strategy and continual improvements to corporate governance were also major strategic targets in 2010.

Cooperation between the Management Board and Supervisory Board The Supervisory Board convened seven times in business year 2010. Regular reporting provided the Board with full and timely updates on all pertinent issues linked to business development, including the risk situation and risk management in the CA Immo Group. Issues such as future trends on the real estate market (development of interest rates, rental prices, etc.), (dis)investment plans, staff changes and associated opportunities and threats were evaluated in detail, special reports on profitability, liquidity and property valuation featured regularly were also on the agenda in 2010. All meetings took the form of open discussions between the members of the Manage- ment Board and the Supervisory Board. The Supervisory Board Chairman maintained close and regular contact with the Management Board, which fully explained any departures from agreed plans and targets. Decisions and measures taken by the Management Board were transpar- Dr. Wolfgang Ruttenstorfer ent and raised no objections. Chairman of the Supervisory Board

Priorities in 2010 Last year, the acquisition of Europolis in particular ser- DEAR SHAREHOLDERS AND READERS, ved to consolidate CA Immo's position as a leading listed property concern in Central Europe. The task in the medi- After two crisis-hit years for the real estate sector, rais- um term will be steadily to optimise the platform estab- ing the profitability of the CA Immo Group and bringing lished over the past few years, thereby utilising the poten- about sustainable organic growth through the implemen- tial in the portfolio with a view to generating regular re- tation of development projects became the priorities in turns for the shareholders. To this end, the Supervisory 2010. The measures required to achieve these objectives Board organised a one-day strategy meeting with the Ma- have been founded on a comprehensive corporate strategy. nagement Board last summer as well as a special meeting The main focus was on the effective and profitable utili- in the autumn in order to review strategy in detail and de- sation of liquidity generated through the issuing of two fine the main strategic objectives for the CA Immo Group. bonds in 2009, an aspiration successfully fulfilled with The actual acquisition of Europolis was approved by the the acquisition of Europolis, a company with a portfolio Supervisory Board at a special meeting held in May 2010, that rates highly in terms of both quality and cash flow. at which the main focus of discussion was the structure Given that it mainly comprises investment properties in of the acquisition, the purchase price, opportunities and the CEE markets of Poland, the Czech Republic and Hun- threats and the implications for the balance sheet of the gary, the € 1.5 bn portfolio dovetails ideally with our de- CA Immo Group. More information on the strategy of the velopment activities in Germany. CA Immo Group and on Europolis AG are included into this report. Progress towards the realisation of strategic targets is discussed by the Supervisory Board on a regular basis.

REPORT OF THE SUPERVISORY BOARD

The Supervisory Board paid particular attention to the Issues relating to risk management, progress on devel- following topics at its ordinary meetings: opment projects launched in recent years and continuing in 2010, refinancing and personnel were also addressed at At the meetings held on 2 July 2010 and 25 August 2010, a number of meetings; the Supervisory Board received the Supervisory Board discussed measures aimed at sim- written and verbal reports on such matters at regular in- plifying the structure of the CA Immo Group, and in par- tervals. ticular the consolidation of CA Immo International AG and CA Immobilien Anlagen AG by means of a merger. In January 2010, the Board conducted its first self-ass- On the basis of the joint merger report of the Boards of essment on the efficiency of its activities, evaluating in CA Immo International AG and CA Immobilien Anlagen particular its organisation and procedures in 2009 (C-Rule AG and the merger audit report of the joint merger audi- 36 of the Austrian Corporate Governance Code). At a mee- tor PwC Transaction Services Wirtschaftsprüfung GmbH, ting held on 24 March 2010, the results of the evaluation the Supervisory Board scrutinised the merger and appro- and the annual activity report on compliance manage- ved the relevant audit report. The Supervisory Board ment within the CA Immo Group were discussed as ap- found the information in the merger agreement to be com- propriate; corporate governance was also reviewed. Ob- plete and correct. In the view of the Supervisory Board, servance of the Corporate Governance Code was evalu- the merger was advisable from a business standpoint and ated by KPMG Wirtschaftsprüfungs- und Steuerberatungs the exchange ratio (10 CA Immobilien Anlagen AG ex- GmbH. change shares to 19 CA Immo International shares) was appropriate. The Supervisory Board had addressed the Committees takeover bid preceding the merger in the spring of 2010, The audit committee convened twice in 2010. The in- subsequently authorising the Management Board to enact vestment committee also convened on two occasions in a voluntary takeover bid for free float shares of CA Immo order to hold detailed discussions with the Management International AG at an offer price of € 6.50 per share. Board on the Europolis acquisition and prepare the KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH ground for a decision of the full Supervisory Board. The was appointed as an independent expert for CA Immo remuneration and nomination committee convened once (“bidder”) and PwC Wirtschaftsprüfung GmbH was the in the period under review. The corporate governance re- independent expert for the target company CA Immo In- port contains more information on the composition and ternational AG. For more information on the transaction, activities of the Supervisory Board and its committees. please refer to the Investor Relations section. Staff changes In addition to the topics outlined above, the Supervisory Last year (effective 31 July 2010), Horst Pöchhacker re- Board devoted a number of meetings to detailed discus- signed his mandate prematurely and of his own volition sions on the acquisition and implementation of various on account of his substantial commitments to ÖBB and development projects in Germany and Eastern Europe as ASFINAG. Mr. Pöchhacker had served the Supervisory well as the sale of real estate. Board since May 2007, and we would like to thank him for his positive contribution. No replacement Board mem- Amongst other things, the Board approved the planning ber has been appointed. His resignation has reduced the and realisation of two office/commercial buildings with a Supervisory Board to five members, with the mandates of total investment volume of € 43.4 m for BelsenPark (the Regina Prehofer and Detlef Bierbaum due to expire in the new district of Oberkassel) and the sale of four other sites business year ahead. A proposal concerning the filling of for residential construction in the park. The Supervisory the vacant positions will be submitted to the Ordinary Board also considered land development for the new Eu- General Meeting by the nomination committee or the full ropacity district in Berlin, the construction of a three-star Supervisory Board in good time. The proposal will pay InterCity Hotel in Berlin's Lehrter quarter and sales of real particular attention to the balanced composition of the estate in Frankfurt, Munich and Basel. In Eastern Europe, Supervisory Board (diversity) as well as the professional the Supervisory Board turned its attention to the imple- and personal qualifications of candidates. mentation of construction phase two of the Poleczki Bu- siness Park in Warsaw; phase one, which lasted just under two years, was concluded in June 2010.

REPORT OF THE SUPERVISORY BOARD

Consolidated and annual financial statements for 2010 KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH has audited the annual financial statements for 2010 (including the management report) and the consolidated financial statements for 2010 (including the Group management report) and expressed its unqualified auditor’s opinion. All documents making up the financial statements, the Management Board’s proposal on the distribution of profit, the auditor’s reports and the corporate governance report were discussed in detail by the audit committee in the presence of the auditor and the Management Board members and examined according to article 96 of the Au- strian Stock Corporation Act; after concluding the examination, no significant objections were raised. The Super- visory Board endorsed the annual financial statements, which were thus adopted in accordance with article 96 subsection 4 of the Austrian Stock Corporation Act, and indicated its consent to the Management Board’s proposal on the distribution of profit.

The Supervisory Board would like to extend thanks to the Management Board and all employees for the dedica- tion they have shown.

Vienna, February 2011

On behalf of the Supervisory Board

Wolfgang Ruttenstorfer,

Chairman

18 CA IMMO ONLINE SERVICES: WHERE TRANSPARENCY MEETS INNOVATION

For all reports published by CA Immo, detailed INVESTOR RELATIONS CONTACT information on the company, the property portfolio, key share figures, an interactive performance calculator Shareholders’ free phone line and much more, simply go to www.caimmoag.com . (in Austria): 0800 01 01 50 Claudia Hainz Our online services: Florian Nowotny 1) Newsletter: Subscribe to receive the news on T: +43 1 532 59 07 CA Immo by e-mail F: +43 1 532 59 07-595 2) Mobile services: For corporate information on the E-Mail: [email protected] move – to your PDA, Smartphone or Communicator – Website: www.caimmoag.com go to mobile.caimmoag.com 3) SMS service: Up-to-date share prices and the latest ad-hoc reports, straight to your mobile phone 4) RSS Feed: All the news on CA Immo, delivered automatically to your computer – nothing could be faster! 5) Ordering service: All of our financial market publications can be supplied by post or e-mail

Any questions? Just get in touch!

NEWLY PRESENTED: The CA Immo property portfolio

19 STRATEGY THE STRATEGY OF THE CA IMMO GROUP, 2011-2013

Last year, the acquisition of Europolis in particular over the next two to three years from markets that do served to consolidate our position as a leading listed not fall within the CA Immo Group’s strategic spotlight property company in Central Europe. Our task in the (such as Serbia, Ukraine and Bulgaria). We also intend to medium term will be to steadily optimise the platform make greater use of our core expertise in the field of office established over the past few years, thereby utilising the properties. In addition, we will target the selective sale potential in the portfolio with a view to provide sustain- of standing assets as well as assets yet to be constructed able returns and consolidate our status as a recognised as part of our development activities. These measures and valued partner to our stakeholders: equity and will serve to absorb expansion in the portfolio that results outside capital providers, the general public and our from the realisation of future development projects. employees.

To this end, we reviewed our strategy in detail in Establishing a balanced business mix the autumn of 2010, working with the Supervisory As a real estate company, CA Immo maintains a high Board to define the following strategic objectives for quality asset portfolio and carries out wide-ranging the CA Immo Group: development activities. Over the years ahead, development will remain a key part of the CA Immo Group’s 1) Raising the profitability of the Group and retaining business mix, although the company will need to keep a our ability to pay dividends will take priority over close watch on the capital tied up in this field. For this continued growth reason, investment properties will make up the main 2) Streamlining the portfolio by focusing specifically focus of the portfolio in the medium term, accounting for on defined core regions and a small number of usage at least 85 %. The development segment will concentrate types on projects with implementation plans that are clearly 3) Pursuing a comprehensive set of environmental, defined and achievable in the short term; long-term land economic and social sustainability goals to ensure reserves will not make up more than 5 % of the total that the technical lifespan of buildings can be fully portfolio. used economically 4) Re-establishing a robust equity ratio 5) Creating a unified corporate culture for the CA Immo employees

On the basis of these guiding principles, we defined concrete strategic targets for the years ahead, as described below.

Optimising and focusing the portfolio Over recent years, the portfolio of the CA Immo Group has expanded rapidly. Taking account of properties acquired through the takeover of Europolis AG, the CA Immo Group’s property assets at the start of 2011 stand at around € 5.1 bn, equivalent to an average annual growth rate in excess of 30 % over the last five years. Having come through this period of expansion, the clear priority for CA Immo now is to optimise the existing portfolio rather than aim for further acquisitions. Active portfolio management will involve withdrawing in stages

20 STRATEGY

Optimising the quality of a focused portfolio Given the fact that we will fall significantly short of this Following the acquisition of Europolis, the portfolio target in the short term owing to the initial consolidation is in need of careful adjustments to further increase the of Europolis, we have identified a range of measures that focus on those regions where CA Immo has a relevant will enable us to rebuild our equity ratio by our own market position. This will mean withdrawing in stages efforts in the medium term. The aforementioned sales from markets where CA Immo has no critical mass even with a view to adjusting the portfolio will be critical in after the Europolis acquisition and that are not part of this regard, with these proceeds enabling us in particular the longer term strategic regions of CA Immo. The Group to reduce our interest-bearing liabilities. We will also aim will seek to bring about a sustained regional portfolio mix to reduce our capital requirement in the project develop- in which Germany makes up around 45 %, Eastern and ment segment through the organised incorporation of South Eastern Europe account for some 40 % and Austria external capital in certain projects. comprises roughly 15 %. At the same time, we must Given our share price in particular, which is well below consolidate the CA Immo Group’s position as a specialist the NAV, it is essential that we achieve our target equity in office properties; over the medium term, the aim is ratio without a capital increase. to maintain the proportion of non-office usage types below 30 %. Creating a coherent CA Immo corporate culture Ensuring the best possible quality of real estate will The recent acquisitions of Vivico and Europolis have be another element as regards the focus of the portfolio. increased the staffing level at CA Immo considerably. In particular, given the high priority accorded to sustain- The task facing the company now is to use the strengths ability by the CA Immo Group, the company will seek of these organisations and incorporate the best elements to enhance the average quality of the portfolio. of each into a unified CA Immo corporate culture. To To this end, CA Immo will transfer to the portfolio realise our strategic objectives efficiently, it is essential selected modern properties developed by the company, that we bring about a common understanding of what the whilst at the same time disposing of older buildings. CA Immo Group stands for and that our employees can identify with the company’s goals. Stabilising the balance sheet and financing structure The experience of the past two years has shown that Achieving long-term profitability and dividend payouts a sufficient level of shareholders’ equity is one of the In the medium term, the measures outlined above most important stability factors for a real estate company. should ensure a recurring return on equity (RoE) of In view of our business mix and regional portfolio com- approximately 5 % from our letting activities. The position, we believe an equity ratio of around 35– 40 % is company hopes this figure will be boosted by additional necessary to give the CA Immo Group adequate room to revenue from the development area, the valuation result manoeuvre in volatile market phases. and income from sales. The aim is to pay shareholders a regular dividend of at least 2 % of net asset value. The ability to pay such a dividend should be achieved already for the current business year.

PROFILE OF EUROPOLIS PROFILE OF EUROPOLIS

The acquisition of 100 % of the shares in Europolis AG estimated € 5.1 bn on 1 January 2011. In regional terms, as agreed with the Volksbank Group last June became ef- the proportion of the Eastern and South Eastern European fective on 31 December 2010. In taking over the Europolis segment in the portfolio as a whole will expand from

Group, which was established in 1990, CA Immo is acqui- around 19 % at present to over 40 %. This means that the ring property assets worth around € 1.5 bn, mainly in segment will be on a par with the German segment in fu- Eastern and South Eastern Europe. Investment properties ture. The relative weighting of property assets under de-

on the core markets of Poland, the Czech Republic and velopment will fall from roughly 25 % to below 20 % as Hungary make up the bulk of the high quality portfolio, the share of property assets let expands. At present, the

and account for 73 % of the company's value. With 21 % rental revenue of Europolis is around € 95 m. The equity

of property assets, Romania is the most important market ratio for Europolis is around 26 % and loan capital totals in South Eastern Europe. A Russian investment of Euro- approximately € 1.0 bn. The acquisition will show up in polis (a shopping centre in Moscow) was not acquired. the interim financial statements for 31 March 2011. Development projects and undeveloped land reserves

constitute 6 % of the Europolis portfolio; logistical projects and the planned Orhideea Business Center office project in Bucharest are the main business activities in this area. EUROPOLIS: DISTRIBUTION OF BOOK VALUE The overall asset portfolio comprises some 1.1 m sqm of BY REGION rentable effective area, spanning the usage categories of

offices (68 % of the value of investment properties), logis-

tics (23 %) and retail (9 %). The portfolio is divided into Poland 33 % six smaller portfolios in which reputable joint venture partners such as the EBRD, AXA and Union Invest hold Ukraine 1%

shares of between 25 % and 49 %. Slovakia 1% As at 31 December 2010, the Europolis Group had a to- Croatia 4% tal of 98 employees. In addition to its headquarters in Vienna, the company has branches in Hungary, Poland, Hungary 15% Romania and the Czech Republic as well as offices in Russia, the Ukraine, Croatia and Cyprus. Romania 21%

Czech Rep. 25% Projected consequences for the CA Immo Group The acquisition raised the CA Immo Group's property assets from around € 3.6 bn as at 31 December 2010 to an

PRO-FORMA KEY DATA CA IMMO GROUP

Europolis CA Immo Total1

Properties in € bn 1.5 3.6 5.1 Total assets in € bn 1.7 4.4 6.1 Equity ratio % 26 38 30 Share of project development in the portfolio % < 10 < 25 < 20 Rental income in € mn 95 164 259

1 Estimated value as at 1 January 2011

PROFILE OF EUROPOLIS

The purchase price and the financing package standing subordinated loan of approximately € 75 m, also The agreement provides for a purchase price of € 272 m with a term of five years. and an extensive financing package; this figure is subject to customary adjustment according to the balance sheet as The acquisition of Europolis, with a portfolio that rates at 31 December 2010. Half of the purchase price was due highly in terms of both quality and cash flow, will go a upon the closing of the transaction at the turn of the year long way towards enhancing the value and revenue of the 2010/2011; the other half will be deferred over a period of CA Immo Group over the long term. Thanks to Europolis, five years from the date of closing. The Volksbank Group, CA Immo will be able to offer its shareholders an asset which is the main financing bank for the Europolis Group, portfolio that is much stronger in terms of its earning po- providing around 45 % of the total financing volume, has wer, and one which dovetails ideally with the company's agreed to extend the terms of existing real estate financing growth-oriented development activities in Germany. to five years from closing. Europolis also has an out-

INVESTOR RELATIONS INVESTOR RELATIONS

Tangible upturn reflected on capital markets estate shares amongst investors, which could in turn In general terms, 2010 was a year of economic recovery. have a positive effect on rate development. During the first half of the year, however, the international share markets fluctuated continually. The key issue The volatile development of the CA Immo share last year affecting the world's financial markets was undoubtedly broadly mirrored the market pattern: the share began the the escalation in the national debt crisis in a number of year at a price of € 8.04 and, after hitting a low point in eurozone countries, which has prompted fears of a new February, maintained an upward trend thereafter. By the recession and global problems with the potential to im- end of the first quarter, it was trading at € 8.97. The vola- pact on capital markets. The continuing uncertainty of tility continued into the second quarter, with the share market players led to steep share price falls on the inter- price fluctuating between € 7.95 and € 9.88, the latter national share markets in the first six months, as a result value representing the highest price for the first six of which the key indices dropped below their previous months. The closing price on 30 June 2010 was € 8.56; year values. However, the economic upturn that became the rate at the end of the third quarter was € 10.45. The ever more apparent as the year progressed, the liquidity announcement of the intention of UniCredit Bank Austria supplied by central banks and the surge in corporate AG to present the shareholders of CA Immo with a volun- earnings ultimately had a positive influence on the mar- tary takeover bid was instrumental in propelling the kets in the second half of 2010. Stock markets in both CA Immo share to its highest value: by the end of the year Austria and elsewhere in Europe recorded gradual gains. (29 December 2010), it was trading at € 11.95. The lowest

The ATX rose 16.39 % in 2010, marginally ahead of the price of € 7.01 had been recorded on 22 February. The DAX, Germany's benchmark index, which increased in share closed the final trading day of 2010 at € 11.74,

value by 15.87 %; both indices thus outperformed the which equated to annual performance of 50.76 %. The majority of their European competitors. The Euro Stoxx discount to the intrinsic value thus fell steadily from

50 ended 2010 at 5.85 % down. – 57 % in the previous year to – 37 %.

Marked improvement for CA Immo share year on year Outlook for 2011 largely optimistic In comparison with the ATX, domestic real estate shares In early 2011 the CA Immo shares continued the posi- performed even more encouragingly since the start of the tive development of the last year. Over the first six weeks year. This was apparent from the development of the of 2011, the highest price for the CA Immo share was IATX (Austrian real estate index), which in 2010 reached € 12.40 and the lowest price was € 11.63. Experts in both its highest value since the collapse in the real estate sec- shares and real estate are predicting the trend to remain tor two years ago. Despite this, Austrian real estate shares positive in 2011. The main reasons for their optimism are are still far short of their net asset value per share. The the high levels of liquidity on the market that will be main reason for this, according to analysts, is continuing invested and the economic upturn in Germany, which reticence on the part of international investors. However, many investors regard as the primary indicator of the experts anticipate that entry into the ATX, which is economic trend across Europe. scheduled for March, will re-establish the profile of real

PERFORMANCE OF INDICES KEY PERFORMANCE FIGURES (30.12.2009 to 30.12.2010) (30.12.2009 to 30.12.2010)

Dow Jones 9.75 % CA Immo share 50.76 % Eurostoxx 50 - 5.85 % IATX 36.79 % NIKKEI225 - 3.85 % EPRA 11.68 % DAX 15.87 % Source: Bloomberg ATX 16.39 % Source: Bloomberg

INVESTOR RELATIONS

Despite this, volatility is likely to remain high on the Voluntary takeover bid for free float shares of CA Immo currency and financial markets in 2011, with rates fluctu- International; amalgamation of CA Immo International ating on the share markets as a consequence. finalised On 20 April 2010, in accordance with article 4ff of the For the Vienna Stock Exchange experts are predicting Austrian Takeover Act, CA Immo announced a voluntary moderate price potential in 2011. Moreover, analysts from public takeover bid to the free float shareholders of INVERSTOR RELATIONS Erste Bank believe that Austrian real estate shares could CA Immo International AG with a view to acquiring their well increase in value by 20–25 % by the end of the year shares at an offer price of € 6.50 per share (in cash). At as the mood in the real estate sector brightens. the time of declaring the takeover bid, CA Immo held 27,402,775 shares in CA Immo International, equivalent

Trading volume and market capitalisation to a 63.05 % stake in the share capital of the takeover tar- Compared to the previous year, trading turnover for the get. The offer, which ran until 11 May 2010, led to the ac-

CA Immo share decreased by around 25 %. The average quisition of 11,293,906 shares in CA Immo International daily trading volume in 2010 was approximately 285,000 (around 26 % of the company's share capital). During the shares, compared to 382,000 shares in 2009. However, the offer period, CA Immo acquired a further 827,286 shares average daily turnover remained stable (€ 2.6 m compa- via the stock market at an average price of € 6.46 per shared to € 2.7 m in 2009). Market capitalisation increased re. An extension period ran until 16 August 2010, result- by around 50 %, from € 689,34 m at the end of 2009 to ing in the acquisition of an additional 2,611,749 € 1.046,37 m on 31 December 2010. CA Immo International shares; another 81,624 shares were acquired by CA Immo via the stock market during Dividend policy this additional period. The transferring company, The primary goal of CA Immo is to raise its revenue so CA Immo International AG merged with CA Immobilien that in future (starting in business year 2011), the compa- Anlagen Aktiengesellschaft, the acquiring company, with ny will consistently be able to pay dividends, with the retrospective effect on the consolidation date 31 Decem- amount of the dividend determined by profitability, ber 2009. growth prospects and the company's capital requirements.

SHARE RELATED KEY FIGURES

31.12.2010 31.12.2009

NNNAV/share € 18.95 18.47 NAV/share € 18.69 17.87

1) Price (key date)/NNNAV per share – 1 %– 37 – 57

Number of shares (key date) pcs. 87,856,060 87,258,600 Ø number of shares (key date) pcs. 87,333,896 86,141,113 Ø price/share € 9.26 6.45 Market capitalisation (key date) € m1,046.37 689.34

Highest price € 11.95 11.88 Lowest price € 7.01 2.35 Closing price € 11.91 7.90

1) before deffered tax

INVESTOR RELATIONS

By this time, taking into account shares held before the November in accordance with the total portfolio of bid, CA Immo held 42,217,340 CA Immo International CA Immo International AG shares. Delivery of the

shares (around 97.14 % of CA Immo International's total CA Immobilien Anlagen AG exchange shares to the de- capital stock). On the basis of net asset values as at 30 positary banks took place via the clearing system of the June 2010, the exchange ratio stood at 10 shares in Oesterreichische Kontrollbank Aktien-gesellschaft. To CA Immobilien Anlagen AG to every 19 shares in this end, CA Immo transacted a capital increase of around CA Immo International AG. The merger with CA Immo € 4.3 m in order to issue 597,460 CA Immobilien Anlagen International AG was discussed at an Ordinary General AG exchange shares (ISIN: AT0000641352) to the share- Meeting on 27 September 2010, at which the amalgama- holders of CA Immo In-ternational AG. tion was approved. Given that CA Immobilien Anlagen

AG already held in excess of 90 % of the shares in Share capital and shareholders CA Immo International AG, a simplified merger under the Implementation of the merger agreement concluded be- terms of article 231 of the Austrian Stock Corporation Act tween CA Immo and CA Immo International AG on 27 was enacted, whereby CA Immo as the acquiring compa- September 2010 raised the capital stock of CA Immo by ny was not required to hold an Ordinary General Meeting. € 4,343,534.20 from an initial figure of € 634,370,022 to € 638,713,556.20 through contributions in kind against All documents relevant to the merger, and in particular the issue of 597,460 bearer shares with a proportionate the joint merger report of the Boards and the audit report amount of the capital stock of € 7.27 per new share. The of the joint merger auditor, may be viewed at new shares (exchange shares) qualified for dividends as at www.caimmoag.com. 1 January 2010 and were approved for official trading on the Vienna Stock Exchange. The capital stock of CA Immo The last and final trading day for CA Immo International was divided into four registered shares and 87,856,056 shares (ISIN: ATCAIMMOINT5) on the Vienna Stock Ex- bearer shares traded on the prime market segment of the change was 15 November 2010. The entry in the company Vienna Stock Exchange. For more information on the register and the exchange of shares were effective as at 16 organisation of shares and the rights of shareholders, November 2010. The exchange was performed early on 16 please refer to the corporate governance report.

INVESTOR RELATIONS

As at the balance sheet date around 11.8 % of the capital no-par bearer shares of CA Immo approved for official stock and the four registered shares are held by UniCredit trading on the Vienna Stock Exchange (equivalent to ap-

Bank Austria AG; as the company's largest shareholder, proximately 17.1 % of the capital stock). The acceptance the bank has constituted the majority at each of the last period extended from 31 January up to and including 16 three Ordinary General Meetings of CA Immo. The com- February 2011. The offer price was € 12.35 per share, INVERSTOR RELATIONS INVERSTOR RELATIONS pany is not aware of any other shareholders with a stake 18.64 % above the closing price for the CA Immo share of more than 5 %. The remaining shares of CA Immo (€ 10.41) on 2 December 2010, the final day of trading

(approximately 88.2 % of the capital stock) are in free before the announcement of the intended takeover, and float. As at key date 31 December 2010, the company did above the average weighted prices for the last one, three, not hold any treasury shares. six, 12 and 24 calendar months. Taking account of average figures, the offer price of € 12.35 was also roughly

8.7 % above the average obtainable target prices of the re- SHAREHOLDER STRUCTURE spective investment banks and financial institutions before the announcement of the intended takeover, but be-

low the book values per share as at 30.9.2010 (-31.2 %), Free float 31.12.2009 (-30.9 %), 31.12.2008 (-34.7 %) and 31.12.2007 (institutional (-44.0 %). Since the bid was voluntary under the terms of investors) ~40% article 4 of the Austrian Takeover Act, the bidder was entitled to determine the offer price freely. For further information, please refer to the supplementary report. UniCredit Bank Austria AG >10% Resolutions of the Ordinary General Meeting Free float As in previous years, the 23rd Ordinary General Meet- (private ing was held at the Group's own Hotel Savoyen in Vienna; shareholders) ~50% the meeting was attended by 132 shareholders, equivalent

to an attendance of 15 %.

The shareholders, prompted by the limitation on profit

distribution, passed a resolution to carry forward to new A shareholder analysis carried out in October 2010 re- account net retained earnings of € 5.9 m shown in the an- vealed that the majority of shareholders (around 63 %) are nual financial statements for 2009 in accordance with ar- from Austria. This is because approximately 50 % of the ticle 235 line 1 of the Austrian Commercial Code. KPMG shares are held by (mostly) Austrian private shareholders. Wirtschaftsprüfungs- und Steuerberatungs GmbH was ap- Institutional investors account for the remainder. From a pointed as the auditing company for business year 2010. geographical viewpoint, 6 % of the institutional investors In addition, the Management Board was authorised to ac- are based in the Anglo-American region (North America quire up to 10 % of the share capital in own shares of the and the United Kingdom) and 7 % are resident in Scandi- company for a period of 30 months from the day of the re- navia. Nearly all of the remaining institutional investors solution. The price range for the possible re-purchase is are based in various parts of Europe. Growth-oriented in- set at no more than 30 % below and 10 % above the aver- vestors form the clear majority (with 34 %), followed by age non-weighted stock exchange closing price on the ten GARP (growth at a reasonable price) investors at 29 % trading days preceding the repurchase. This authorisation and core value investors with 11 %. had not been utilised at the time of publication of this report. The Articles of Association have also been adjusted Takeover bid by UniCredit Bank Austria to take account of amended legal provisions connected On 3 December 2010, UniCredit Bank Austria AG of Vi- with the Austrian Stock Corpo-ration Amendment Act enna announced its intention to make a voluntary public 2009 and the Company Law Amendment Act 2008. The partial takeover bid under the terms of article 4ff of the updated Articles of Association may be viewed on the Austrian Takeover Act with a view to acquiring shares in company's website at CA Immo. On 29 January 2011, the takeover bid was pu- http://www.caimmoag.com/investor_relations/corporate_ blished simultaneously with the statement of the admin- governance/. istrative bodies of CA Immobilien Anlagen AG. The bid proposed the acquisition of up to 15,031,823 free float,

INVESTOR RELATIONS

CA Immo bonds Investor relations

The 5.125 % CA Immo bond 06-16 (ISIN: We believe it is critical to be seen as a trustworthy part- AT0000A026P5) with a nominal value of € 200 m is regis- ner on the trading floor. For this reason, regular and per- tered for trading on the unlisted securities market of the sonal contact with investors and analysts and a direct and Vienna Stock Exchange. In 2010, it traded between the continual flow of communication are high priorities for low price of 99.00 (low for 2009: 79.00) and the upper va- CA Immo in the field of investor relations. Our work in lue of 105.00 (high for 2009: 100.00), closing the year at this area is based on open dialogue in the form of face-to- 100.98 (compared to 99.00 in 2009). The remaining term face meetings, roadshows, conferences for analysts and

on the bond is 5.72 years; it will be 100 % redeemed on investors and capital market days. In 2010, a total of 35

22 September 2016. The annual interest return is 5 % conferences and 152 one-on-one dialogues and Group (Source: Vienna Stock Exchange). presentations attracted the interest of over 250 stakeholders.

The 6.125 % CA Immo bond 09-14 issued in October 2009 with a nominal value of € 150 m (ISIN: As a standard service, we offer investors financial news AT0000A0EXE6) is also registered for trading on the bulletins and press releases via email subscription; we unlisted securities market of the Vienna Stock Exchange. also send our stakeholders an electronic newsletter. Cor- In 2010, it traded between the high price of 107.99 (high porate and financial information, company reports and for 2009: 104.50) and the low of 101.50 (low for 2009: presentations, ad-hoc reports and press releases are freely 102.99), closing the year at 103.55 (against 103.65 in accessible to the general public without delay at 2009). The bond has a remaining term of 3.78 years, with www.caimmoag.com. All important dates are listed in the the maturity date set at 16 October 2014; the interest rate financial and event calendar, which is also updated regu-

was fixed at 6.125 % (Source: Vienna Stock Exchange). larly on the company's website. Conference calls are arranged as demand dictates, and whenever financial In November 2009, CA Immo made use of the authorisa- results are published. In addition, it is possible to contact tion granted by the 21st Ordinary General Meeting held the IR team by telephone via our free Info Line (in Aus- on 13 May 2008 to issue a convertible bond with an issue tria). Finally, this open communication and the services volume of € 135 m. The convertible bonds were offered provided are designed to improve and to deepen the exclusively to institutional investors outside the USA, Ca- dialogue between shareholders and the company. nada, Australia and Japan. The bonds have a term of five years, with 3.85 years remaining; early repayment by Award-winning reporting CA Immo is possible after three years provided the price CA Immo has been rewarded for its exemplary corporate of the CA Immo share (in certain periods) amounts to at governance and consistently transparent reporting by the

least 130 % of the applicable conversion price at that time. business magazine 'trend'. The Austrian Annual Report

The coupon (payable semi-annually) was set at 4.125 % Award is conferred every year in honour of the best re- p.a.; the initial conversion price was set at € 11.58. This ports in Austria. A jury made up of business specialists

corresponds to a premium 27.5 % above the reference and academics presented the Award for Excellence to price of € 9.08. The convertible bonds were issued at CA Immo in recognition of its corporate governance and

100 % of the nominal amount of € 50,000 per bond; they transparency. The company's financial reporting also se-

will be repaid on maturity (9 November 2014) at 100 % of cured a prize that takes account of reporting across inter- the nominal amount plus accrued interest, provided they national sectors: the European Public Real Estate Associa- are not converted before that date. The convertible bonds tion (EPRA) rated CA Immo 'silver' in its Annual Report are registered for trading in the MTF (Third Market) of the Survey. Eighty annual reports from leading listed real es- Vienna Stock Exchange (ISIN: AT0000A0FS99); at the end tate companies across Europe were assessed, the aim be- of 2010, they were trading at 106.00 (97.60 at the end of ing to bring about greater consistency and transparency in 2009) (Source: Vienna Stock Exchange). financial reporting for the benefit of investors.

INVESTOR RELATIONS

Research STOCK RATING In 2010, CA Immo was subject to regular coverage by financial experts from Crédit Agricole Cheuvreux, Erste Recommend Price target in € Bank, HSBC, Kempen & Co Investment Research, SRC Research and UniCredit Bank Austria AG. Over the next Cheuvreux 1/Selected List 15.30 (6M) INVERSTOR RELATIONS INVERSTOR RELATIONS 12 months, analysts are predicting that the CA Immo Erste Bank Accumulate 11.20 (12M) share price will fluctuate in the range of € 10.90 HSBC Overweight 11.00 (12M) (UniCredit) to € 15.30 (Cheuvreux). In addition, SRC Kempen & Co Underweight 12.00 (12M) Research recommended the purchase of the CA Immo SRC Research Buy 13.00 (12M) share and Cheuvreux added it to their selected list. UniCredit Hold 10.90 (12M)

BASIC INFORMATION ON THE CA IMMO SHARE

Type of shares No-par value shares Listing Vienna Stock Exchange, Prime Market Indices: IATX, FTSE EPRA/NAREIT Europe, GRP 250, ATX-Prime, IATX, WBI Specialist: Erste Group Bank AG Market maker: Crédit Agricole Cheuvreux S.A., UniCredit Bank AG Stock exchange symbol / ISIN: CAI / AT0000641352 Reuters: CAIV.VI Bloomberg: CAI:AV

Shareholder’s phone line (in Austria): 0800 01 01 50 EMail: [email protected] Website: www.caimmoag.com

Investor relations Corporate communications Claudia Hainz Florian Nowotny Susanne Steinböck T: +43 1532 590 7502 T: +43 1532 590 7518 T: +43 1532 590 7533 F: +43 1532 590 7595 F: +43 1532 590 7595 F: +43 1532 590 7595 [email protected] [email protected] [email protected]

FINANCIAL CALENDAR 2011

10 MARCH 25 AUGUST PUBLICATION OF ANNUAL RESULTS FOR 2010 INTERIM REPORT FOR THE FIRST HALF 2011

10 MAY 23 NOVEMBER ORDINARY GENERAL MEETING INTERIM REPORT FOR THE THIRD QUARTER 2011

25 MAY INTERIM REPORT FOR THE FIRST QUARTER 2011

29 CORPORATE GOVERNANCE MANAGEMENT BOARD

BRUNO ETTENAUER CHIEF EXECUTIVE OFFICER, CEO (BORN 1961)

Bruno Ettenauer gained his initial experience in the field of real estate and mortgage financing with banking organisa tions such as P.S.K. Bank, Österreichische Länderbank and Bankhaus Feichtner. In 1999, Ettenauer joined the Financing and Consulting department of Creditanstalt AG; in November 2000 he was appointed head of real estate transactions (for Austria and central/eastern Europe) at Creditanstalt/Bank Austria. Bruno Ettenauer became a member of the CA Immo Management Board in 2006; he is responsible for the areas of real estate, financing, project organisation, IT, personnel and legal affairs. Alongside other Group functions, he holds Supervisory Board mandates at UBM Realitäten entwicklung AG, Bank Austria Real Invest GmbH, Bank Austria Real Invest Immobilien-Kapitalanlage GmbH, Bank Austria Wohnbaubank AG and WED Wiener Entwicklungsgesellschaft für den Donauraum Aktiengesellschaft.

Initial appointment: 1 March 2006 Term of office ends: 30 September 2012

WOLFHARD FROMWALD MEMBER OF THE MANAGEMENT BOARD, CFO (BORN 1952)

From 1980 to 2001, Wolfhard Fromwald worked in the Investment department of Creditanstalt. During that time he held various positions, including deputy head of division and head of the Industry, Trade and Service department. From 1990 onwards, he acted as Managing Director of various investment companies, including CA Immobilien Invest AG, CA Immobilien Development AG, Industrie und Immobilien-Verwaltung GmbH, Handelsbeteiligung GmbH and SCS Liegenschaftsverwaltung GmbH. He was also a Supervisory Board member at ÖRAG Österreichische Realitäten AG, Universale Bau AG and Semperit Holding. Wolfhard Fromwald joined the Management Board of CA Immo in 1990, since when he has been responsible for the areas of finance and accounting, controlling, corporate communications and investor relations and capital markets. He is also a member of the Supervisory Board at UBM Realitätenentwicklung AG, in which CA Immo holds a stake of 25 % plus four shares.

Initial appointment: 28 March 1990 Term of office ends: 30 September 2012

BERNHARD H. HANSEN MEMBER OF THE MANAGEMENT BOARD, CTO (BORN 1954)

Bernhard H. Hansen gained his first experience of real estate projects at organisations that included Strabag Bau AG; he also headed the construction division of the European Space Agency. He joined Deutsche Bank AG in 1992, where he oversaw project development for a subsidiary company. In 1996 he was appointed Managing Director of Deutsche Interhotel Holding GmbH & Co. KG, later fulfilling the same role at companies that included DB Immobilien. In 2000 he was appointed to the Management Board of DB Station & Service AG. On 1 January 2006, Bernhard H. Hansen switched to become Chairman of the Management Board of Vivico. He joined the Management Board of CA Immo on 1 October 2009; in his capacity as CTO, he is responsible for all technological divisions and the implementation of all Group development activities. Amongst other functions, Mr. Hansen is also the Chairman of ULI Germany, a member of the Supervisory Board of Bulwien Gesa AG, a member of the presiding committee at ZIA (Zentraler Immobilen Ausschuss) and an advisor to Eurohypo AG and IREBS in Germany.

Initial appointment: 1 October 2009 Term of office ends: 30 September 2012

30 CORPORATE GOVERNANCE

DIVISION OF RESPONSIBILITIES

FULL MANAGEMENT

DIVISIONS: AUDITING AND RISK MANAGEMENT CORPORATE CORPORATE GOVERNANCE

BRUNO ETTENAUER WOLFHARD FROMWALD BERNHARD H. HANSEN

DIVISIONS: DIVISIONS: EQUITY AND DEBT FUNDING CORPORATE COMMUNICATIONS INVESTOR RELATIONS / CAPITAL MARKETS

Project organisation / IT / personnel / Finance and accounting Development legal affairs Controlling Technology Investment management Asset management

31 KOPFZEILECORPORATE GOVERNANCE SUPERVISORY BOARD

WOLFGANG RUTTENSTORFER HELMUT BERNKOPF CHAIRMAN OF THE SUPERVISORY BOARD DEPUTY CHAIRMAN OF THE (BORN 1950) SUPERVISORY BOARD (BORN 1967)

Wolfgang Ruttenstorfer started his Helmut Bernkopf began his interna career in 1976 with OMV, where tional career in the corporate clients his fields of responsibility included area of Bank Austria in 1994. In the planning and control, corporate de course of his career, he has head velopment and marketing. He was ed loan syndication in London and appointed an Executive Board mem served on the Management Board ber in 1992, a role he performed until of HVB Bank Romania. He oversaw 1997. From 1997 to 1999, he served the central and eastern Europe re as State Secretary at the Federal Min gion as a General Manager at Bank istry of Finance. Early in 2000, he re Austria from 2005 to 2006 before be turned to the OMV Group as Deputy ing appointed to the Board of Man Director General. He was appointed agement of International Moscow Chief Executive Officer and Director Bank. In September 2008, he joined General of OMV in 2002. In addition the Management Board of UniCredit to his posts at OMV and CA Immo, Bank Austria AG to run the corpo Wolfgang Ruttenstorfer is a mem rate clients business and the invest ber of the Supervisory Board of the ment banking division. In addition to listed Swiss company Roche Holding his role at CA Immo, Helmut Bern Ltd, the Supervisory Board Chair kopf is a member of the Supervisory man at Vienna Insurance Group AG Board at Lenzing AG. He holds other and a Supervisory Board member at mandates in non-listed companies. Telekom Austria AG. Initial appointment: 2009 Initial appointment: 2009 Term of office ends: 2014 Term of office ends: 2014 (27th Ordinary General Meeting) (27th Ordinary General Meeting)

32 CORPORATE GOVERNANCEKOPFZEILE CORPORATE CORPORATE GOVERNANCE

DETLEF BIERBAUM REINHARD MADLENCNIK REGINA PREHOFER (BORN 1942) (BORN 1961) (BORN 1956)

Detlef Bierbaum was appointed as After completing a degree in busi Regina Prehofer began her profes a general partner (co-owner) of the ness administration, Reinhard sional career with Österreichische bank Sal. Oppenheim in 1991. He Madlencnik joined the BA-CA Group Kontroll¬bank AG in 1981 before took responsibility for asset man (now UniCredit Bank Austria AG) in moving to Creditanstalt in 1987. In agement before switching to the 1985. Having fulfilled various roles 2000, she was appointed head of the Supervisory Board of Sal. Oppen in the fields of commercial financ Division for Multinational Corpo heim Germany at the end of March ing and risk management, he was ap rates, Corporate Finance and Trade 2010. Having accumulated over 40 pointed deputy head of Real Estate Finance; three years later, she joined years’ experience in the international in 2003, going on to manage the divi the Management Board of Bank Aus finance industry, he is now a sought- sion in 2006. In his present position, tria. Regina Prehofer moved to the after advisor to numerous compa he is responsible for all commercial Management Board of BAWAG P.S.K. nies and institutions. Mr. Bierbaum real estate business as well as proper in September 2008, where until Sep sits on the Supervisory Boards of two ty financing. He holds no posts with tember 2010 she oversaw all private listed companies in Germany: IVG listed companies at home or abroad and corporate client business in Aus Immobilien AG (as Chairman) and aside from his Supervisory Board tria. She holds no posts with listed Douglas Holding AG. function at CA Immo. companies at home or abroad aside from her function as a Supervisory Initial appointment: 2006 Initial appointment: 2002 Board member at CA Immo. Term of office ends: 2011 Term of office ends: 2012 (24th Ordinary General Meeting) (25th Ordinary General Meeting) Initial appointment: 2006 Term of office ends: 2011 (24th Ordinary General Meeting)

33 Newly acquired by the takeover of Europolis: ZAGREBTOWER, Zagreb

CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT

ALWAYS REMEMBERING OUR RESPONSIBILITY ICG standards complement the Austrian Corporate Gov- ernance Code by setting down appropriate regulations for As a listed real estate company, CA Immo knows that listed stock corporations active in the real estate sector. In integrity, professionalism, transparency and fairness con- particular, the standards stipulate a duty to inform as re- stitute the essential foundation in our dealings with in- gards changes in property valuations, promote specific vestors, business partners, clients, tenants, staff and the knowledge of real estate within the Supervisory Board general public. We are mindful of economic, environmen- and define rules on the prevention of conflicts of interest tal and social aspects as we develop and manage proper- in acquisitions and sales of real estate as well as the awar- ties, and we regard raising the value of real estate and the ding of contracts in the property sector. Accordingly, all company as our duty and our goal. staff members of Vivico have been trained in these guidelines in 2010 and have entered into a binding agreement For CA Immo, integrating corporate governance in eve- to observe the code. The company's business partners and ryday business dealings is of fundamental importance. service providers have also been informed of the regula- We organise our business in such a way that we are able tions and pledged to comply with them. The rules cover to comply with all applicable compliance standards. Abo- everything from contract award guidelines to principles ve all, the CA Immo business model is based on the trust of payment transactions and dealing with gifts and invita- GOVERNANCE CORPORATE that we have earned from our stakeholders. tions. Needless to say, we comply with local laws as regards our subsidiaries in (South) Eastern Europe. CA Immo is committed to observing the provisions of the Austrian Corporate Governance Code CA Immo has also codified the basic principles of its Even before the implementation of the Austrian Corpo- business practice in a code of conduct along the lines of rate Governance Code in 2002, the CA Immo Group was the German ICG standards. Based on the company's val- determined to ensure that the business activity of ues, the code applies to all business areas from business CA Immo and the company itself were as transparent and year 2011 and will be a central document in terms of en- open to external scrutiny as possible. The CA Immo Man- acting the CA Immo Group's aims and strategies. The co- agement and Supervisory Boards attach great importance de of conduct was compiled internally with the coopera- to compliance with legal provisions applicable in Austria; tion of the various units and business divisions. The ma- they are committed to observing the Austrian Corporate jority of CA Immo Group employees have already re- Governance Code and thus to transparency and uniform ceived training in the guidelines. principles of good corporate management. In business year 2010, CA Immo implemented almost in full the re- Compliance management and the prevention of insider gulations and recommendations of the Code as amended trading in January 2010. Discrepancies were noted in respect of C The Management Board has in the past made appropri- Rules no. 2 (right of appointment to the Supervisory ate arrangements to prevent insider trading by implemen- Board), 39 (independence of committee members), 45 ting the Issuer Compliance Decree published by the Aus- (executive positions with competitor companies) and 53 trian Financial Market Authority (FMA) within the com- (independence of the Supervisory Board). This report pany. The restructuring of the CA Immo Group on ac- contains a corresponding statement on the discrepancies. count of the integration of Vivico (functional merger), the Compliance with the Code is evaluated annually (most re-integration of CA Immo International AG (amalgama- recently by KPMG Wirtschaftsprüfungs- und Steuer- tion of 16 November 2010) and especially the acquisition beratungs GmbH). The results of the evaluation may be of Europolis in June 2010 necessitated revision of viewed on the website (www.caimmoag.com), whilst the CA Immo's compliance guidelines during business year Austrian Corporate Governance Code itself may be view- 2010; the guidelines were approved by the Management ed on the website of the Austrian Working Group for Cor- Board early in 2011. Along with other sector-specific and porate Governance at www.corporate-governance.at. company-specific rules of conduct, the compliance guidelines apply in full to all corporate units and staff mem- Moreover, CA Immo voluntarily observes the ICG stan- bers of the CA Immo Group. Observance of the guidelines dards (those defined by the Initiative Corporate Gover- is monitored by the compliance officer. nance der deutschen Immobilienwirtschaft e.V.), under which Vivico, the company's subsidiary, became one of the first German property developer to be certified. The

CORPORATE GOVERNANCE

Members of the Management and Supervisory Boards partmental and Board responsibilities, all agendas are dis- and others performing management tasks at CA Immo are cussed openly by the Board members at regular Manage- required to disclose all personal acquisitions and sales of ment Board meetings, with departmental representatives shares in CA Immo. The ruling also applies to anyone included in the discussions; the implementation of reso- with a close relationship to such managerial personnel. lutions passed is constantly monitored. The Supervisory Acquisitions and sales of CA Immo securities by Board Board is informed immediately of any significant dis- members are regularly reported at www.caimmoag.com. crepancies from planned values. To a large extent, the The remuneration report contains an overview of share Management Board takes responsibility for communica- ownership. tion tasks of critical importance.

Equal treatment of shareholders is top priority Declaration of independence by the Supervisory Board CA Immo has issued 87.9 million ordinary shares in ac- The Supervisory Board of CA Immo currently comprises cordance with the ‘one share–one vote’ principle. Around five members, all of whom were elected by the Ordinary

88 % of shares were in free float as at key date 31 Decem- General Meeting. In compliance with the Corporate Gov-

ber 2010. UniCredit Bank Austria AG holds 12 % of the ernance Code, the Supervisory Board has defined criteria capital stock plus four registered shares, which entitle the for evaluating its independence (C Rule 53). According to bank to nominate one Supervisory Board member for these criteria, a Board member shall be deemed to be in- each share. To date, this right has not been exercised; all dependent where he or she has no business or personal Supervisory Board members have been elected by the Or- relationship with CA Immo or its Management Board dinary General Meeting. There are no preference shares or which could cause a material conflict of interests and restrictions on ordinary shares of the company. In addi- thus influence the conduct of that member. Specifically, tion, the Austrian Takeover Act ensures that all sha- no Supervisory Board member may have served on the reholders would receive the same price for their Management Board or as a senior executive of CA Immo CA Immo shares in the event of a takeover bid (mandato- or one of its subsidiaries in the last five years; more gen- ry offer). In all cases, the shareholders alone would de- erally, no Supervisory Board member may have, or have cide whether to accept or reject any such bid. The share- had in the past year, a business relationship of excessive holder structure is set out in detail in the Investor Rela- closeness to the CA Immo Group. The same applies to tions section. professional links with companies in which the Supervi- sory Board member has a significant business interest. Supervisory and Management Board collaboration Acceptance by the Supervisory Board of such business according to the Code relations in individual cases does not, however, lead to Cooperation between the Supervisory Board and the automatic classification as non-independent. Moreover, Management Board is based on open discussion between Supervisory Board members may not have been auditors and within these bodies in accordance with the princi- of CA Immo or employees or stakeholders of the compa- ples of sound corporate governance. The Supervisory ny's firm of auditors during the last three years. Cross- Board is provided with full details of pertinent matters links and close family relationships between the Supervi- regularly (or informed in good time prior to relevant Su- sory Board and the Management Board are also discour- pervisory Board meetings) in order that business devel- aged. Finally, a Supervisory Board member will no longer opments and issues requiring decisions may be consid- be regarded as independent where that person has served ered in the proper manner. Details of the main activities on the Supervisory Board of CA Immo for a term in ex- of the Supervisory Board in business year 2010 are listed cess of 15 years (exceptions to this are shareholders with

in the Supervisory Board report. stakes of over 10 % or the representatives thereof).

Responsibilities of the Management Board All members of the Supervisory Board have declared The Management Board of CA Immo has three members. their independence in the knowledge of these criteria. Bruno Ettenauer has been the Chief Executive Officer sin- Moreover, the majority of Supervisory Board members ce October 2009. Cooperation between Management (Wolfgang Ruttenstorfer, Detlef Bierbaum and Regina Board members is regulated by pertinent legal provisions Prehofer) meet the criteria of C Rule 54 in that they do not as well as the Articles of Association and rules of proce- represent the interests of any shareholder with a stake of

dure passed by the Supervisory Board (including the more than 10 % (UniCredit Bank Austria AG). The guide- schedule of responsibilities). Regardless of individual de- lines on independence compiled by the Supervisory

CORPORATE GOVERNANCE

Board are also published on the company’s website sidiaries of CA Immo. The full committee rules on mat- (www.caimmoag.com), along with a list of all mandates ters of critical importance as well as general strategy. The held by Board members outside of the CA Immo Group. Supervisory Board held seven meetings in the year under review. A detailed description of the main activities of Preventing conflicts of interest the Supervisory Board in business year 2010 is provided To avoid any conflicts of interest, Supervisory Board in the Supervisory Board report. The Board also executes members are prohibited from taking up executive posi- its duties through three competent committees. Where tions with any competitor companies; otherwise, a sub- decisions are required on urgent matters, the presiding stantiated statement must be submitted in accordance committee of the Supervisory Board is convened. Regular with the ‘comply or explain’ principle (C Rule 45). Al- reports on the work of the committees as well as the pre- though a number of CA Immo Supervisory Board mem- siding committee are submitted to the Supervisory Board. bers hold executive positions with similar companies within the sector, each of them is obliged to declare without delay any consultancy or executive functions perfor- THE SUPERVISORY BOARD COMMITTEES med for a competitor organisation or business partner. In the event of a contradiction of interests arising, the mem- The audit committee GOVERNANCE CORPORATE ber in question shall be required to abstain from taking CA Immo’s audit committee, which is responsible for part in voting procedures or leave the meeting while the overseeing the entire process of financial reporting, car- relevant item on the agenda is being discussed. Stringent ries out preparatory work for the full Supervisory Board standards are applied when determining the existence of on all issues connected with the annual and consolidated a conflict of interests. The following Supervisory Board financial statements, the proposal on the distribution of members hold executive positions with similar compa- profit and the management report. It also monitors the ef- nies: Alongside their posts at CA Immo, Helmut Bernkopf fectiveness of the internal control system and the and Reinhard Madlencnik, who also hold positions with CA Immo risk management system as well as the inde- UniCredit Bank Austria AG, fulfil Supervisory Board pendence and competence of the auditing company (as mandates with a number of the bank's subsidiaries that assessed by ‘peer reviews’). The audit committee con- are active in similar fields of business (real estate and vened twice in 2010 to discuss and audit the annual and project development). Detlef Bierbaum also chairs the consolidated financial statements for 2009, including the Supervisory Board of IVG Immobilien AG in Germany. A management reports and corporate governance report, full list of executive functions performed by Management with the auditor and the Management Board (24 March and Supervisory Board members may be viewed at and in 2010). A statement was obtained from the proposed audi- the related party disclosures in the notes. No loans were tor, whose legal relationship with CA Immo and its senior extended to Supervisory Board members. There are no di- executives was scrutinised; the fee for carrying out the rect agreements, and in particular no consultancy con- audit was negotiated and a recommendation on the selec- tracts, between CA Immo and members of the Supervi- tion of an auditor was submitted. The internal monitoring sory Board. system and the implementation of risk management in the company were also examined. At the meeting held on To ensure conflicts of interest are also prevented at 25 August 2010, the audit committee discussed the finan- Board level, Management Board members may only enter cial results for the first half of 2010. No objections were into secondary activities (in particular accepting Supervi- raised at either meeting. In compliance with the Code, all sory Board mandates with companies not connected to members of the audit committee are acknowledged as fi- the Group) with the approval of the Supervisory Board. nancial experts on the basis of their experience and pro- The Management Board must authorise all external man- fessional track records. dates held by senior executives. The investment committee Responsibilities of the Supervisory Board The investment committee may approve transactions The responsibilities of the Supervisory Board are stipu- and measures to a maximum volume of € 75 m; beyond lated in the Articles of Association and the rules of pro- this limit, the full Supervisory Board assumes responsi- cedure adopted by the Supervisory Board. The obligati- bility. Working with the Management Board and bringing ons therein defined as regards information provision and in competent experts where necessary, the investment reporting by the Management Board also apply to the sub- committee is also required to prepare the ground for significant (investment) decisions to be taken by the full

CORPORATE GOVERNANCE

Supervisory Board. The investment committee held two When Supervisory Board mandates become available, meetings in the period under review, both of which were the nomination committee (or full Supervisory Board) al- convened to prepare for and examine the acquisition of so proposes candidates to the Ordinary General Meeting, Europolis with a view to a subsequent resolution by the taking into consideration personal and professional quali- full Supervisory Board. fications as well as the diversification of the Supervisory Board. Last year (effective 31 July 2010), Horst Pöchacker The remuneration and nomination committee resigned his mandate prematurely and of his own volition The remuneration and nomination committee is respon- on account of his substantial commitments to ÖBB and sible for all Management Board-related matters, and suc- ASFINAG. No replacement Board member has been ap- cession planning in particular. Management Board mem- pointed. His resignation has reduced the Supervisory bers are selected according to a defined appointment pro- Board to five members, with the mandates of Regina cedure, taking into account corporate strategy and the Prehofer and Detlef Bierbaum due to expire in the busi- current position of the organisation. The remuneration ness year ahead. An appropriate proposal concerning the and nomination committee convened once in the period filling of the vacant positions will be submitted to the Or- under review in order to arrive at a final definition of the dinary General Meeting by the nomination committee or LTI programme for the Management Board and first-level the full Supervisory Board in good time. The proposal managerial employees. For more details, please refer to will pay particular attention to the balanced composition the remuneration report. of the Supervisory Board (diversity) as well as the professional and personal qualifications of candidates.

COMPOSITION OF COMMITTEES

Audit committee Investment committee Remuneration and nomination committee

Wolfgang Ruttenstorfer (Chairman) Wolfgang Ruttenstorfer (Chairman) Wolfgang Ruttenstorfer (Chairman) Helmut Bernkopf Helmut Bernkopf Helmut Bernkopf Reinhard Madlencnik Reinhard Madlencnik Regina Prehofer

Active risk management Women are strongly represented Risk Management and Internal Auditing are separate We believe that for our company to be successful, our units under the control of the full CA Immo Management male and female employees must work together on the Board (C Rule 18). Both units took up their assigned du- basis of trust and equality. This means that all staff mem- ties in business year 2010. They now oversee compliance bers must be treated in accordance with the same princi- with legal provisions, internal guidelines and rules of ples, with equal opportunities in terms of advancement conduct on the basis of an annually compiled auditing and remuneration. The aim of our active personnel policy plan and also monitor the potential for risk in operational is qualitatively, quantitatively and structurally to increase processes (upholding the dual verification principle in all the proportion of women in the workforce as a whole, in organisational entities, continual reporting, and so on). trained positions and at all managerial and executive Reports on the auditing plan and assessment results will levels. The proportion of women in the CA Immo Group

be submitted to the Supervisory Board at least once every currently stands at approximately 44 %. Although the year. The Internal Monitoring System (IMS) is also being composition of the Management Board is exclusively continually expanded to assist in the early identification male, the proportion of female executives at the second and monitoring of risks. Further information appears in level of management (Group manager level) stands at

the full risk management report. 36 %, which is close to being in compliance with the

CORPORATE GOVERNANCE

European Union's much-discussed proposal on introduc- C Rule no. 39: ing a female ratio of 40 % for managerial positions. The Supervisory Board forms competent committees Amongst the five members of the Supervisory Board there regardless of the specific circumstances of the company is one female representation. and the number of its members. The committees serve to increase the efficiency of the Supervisory Board's work Auditing company fees and the handling of complex issues. However, the Super- CA Immo’s annual and consolidated financial state- visory Board is at liberty to have committee matters dis- ments were audited by KPMG Wirtschaftsprüfungs- und cussed by the full Board. All committee chairpersons re- Steuerberatungs GmbH. In the case of foreign subsidiaries, port to the Supervisory Board regularly on the work of local KPMG accountants are generally charged with re- their committees. The Supervisory Board must ensure viewing and auditing the semi-annual and annual finan- that committees are authorised to take decisions in urgent cial statements and with overseeing the conversion to cases. The majority of committee members satisfy the cri- IFRS. The management letter from the auditing company teria for independence in line with C Rule 53. The names along with a report on the effectiveness of risk manage- of committee members and their chairpersons must be lis- ment within the Group were brought to the attention of ted in the corporate governance report; the report must al- the Supervisory Board Chairman and discussed by the so state the number of meetings held by the committees GOVERNANCE CORPORATE audit committee and the full Supervisory Board. In 2010 and details of their activities. a total of € 256.2 K (€ 289.8 K in 2009) was charged for auditing the Group. Project-related and other (audit) ser- Explanation/reason: vices amounted to € 239.0 K in the reporting period Fundamentally, CA Immo complies with all the require-

(€ 198.0 K in 2009). No consulting services which could ments of this rule. Reference is made to the explana- compromise independence (particularly legal/tax consul- tion/reason for C Rule no. 53 solely with regard to the in- tancy services) were rendered by the auditor. dependence of committee members, all CA Immo committees are represented by three members, and both Helmut Bernkopf and Reinhard Madlencnik sit on the COMPLY OR EXPLAIN audit committee and the investment committee.

Compliance with most of the C Rules of the Austrian C Rule no. 45: Corporate Governance Code has been achieved. Discrep- Supervisory Board members may not take up executive ancies are noted in the following areas: positions with companies that are competitors of CA Immo. C Rule no. 2: Formulation of shares in accordance with the ‘one Explanation/reason: share–one vote’ principle. Although a number of CA Immo Supervisory Board members hold executive positions with similar compa- Explanation/reason: nies within the sector, each of them is obliged to declare CA Immo has issued 87.9 million ordinary shares in without delay any consultancy or executive functions accordance with the ‘one shar–one vote’ principle. performed for a competitor organisation or business part-

Around 88 % of shares were in free float as at key date 31 ner. In the event of a contradiction of interests arising, the

December 2010. UniCredit Bank Austria AG holds 12 % member in question shall be required to abstain from ta- of the capital stock plus four registered shares, which en- king part in voting procedures or leave the meeting while title the bank to nominate one Supervisory Board member the relevant item on the agenda is being discussed. Strin- for each share. To date, this right has not been exercised; gent standards are applied when determining the exis- all Supervisory Board members have been elected by the tence of a conflict of interests. The following Supervisory Ordinary General Meeting. There are no preference shares Board members hold executive positions with similar or restrictions on ordinary shares of the company. In companies: Alongside their posts at CA Immo, Helmut addition, the Austrian Takeover Act ensures that all sha- Bernkopf and Reinhard Madlencnik, who also hold posi- reholders would receive the same price for their tions with UniCredit Bank Austria AG, fulfil Supervisory CA Immo shares in the event of a takeover bid (manda- Board mandates with a number of the bank's subsidiaries tory offer). In all cases, the shareholders alone would de- that are active in similar fields of business (real estate and cide whether to accept or reject any such bid. project development). Detlef Bierbaum also chairs the

CORPORATE GOVERNANCE

Supervisory Board of IVG Immobilien AG in Germany. A UniCredit Bank Austria AG is the principal bank of the full list of executive functions performed by Management CA Immo Group and the largest shareholder in the com-

and Supervisory Board members may be viewed at pany with a stake of over 10 % (as at 31 December 2010). www.caimmoag.com. CA Immo processes most of its payment transactions and arranges much of its credit financing and financial in- C Rule no. 53: vestment through the bank. UniCredit Bank Austria AG The majority of Supervisory Board members elected by also holds four registered shares, which entitle the bank the Ordinary General Meeting or appointed by the share- to nominate one Supervisory Board member for each holders in accordance with the Articles of Association are share (see explanation for C Rule 2). Reference is also independent of the company and its Management Board. made to the remarks on C Rule 45 (executive positions A Board member shall be deemed to be independent with competitor companies). where he or she has no business or personal relationship with the company or its Management Board which could cause a material conflict of interests and thus influence the conduct of that member. The Supervisory Board compiles the independence criteria on the basis of this general clause and publishes them in the corporate governance report. The independence guidelines in appendix 1 provide an additional point of reference. In line with the defined criteria, every member of the Supervisory Board is personally responsible for declaring their own independence to the Supervisory Board. Members of the Su- pervisory Board who meet the criteria are named in the corporate governance report.

Explanation/reason: In compliance with the Corporate Governance Code, the Supervisory Board has defined criteria for evaluating its independence. According to these criteria, a Board member shall be deemed to be independent where he or she has no business or personal relationship with CA Immo or its Management Board which could cause a material conflict of interests and thus influence the conduct of that member. The guidelines on independence compiled by the Supervisory Board are published in full on the company’s website (www.caimmoag.com), along with a list of all mandates outside of CA Immo held by Board members. All members of the Supervisory Board have declared their independence in line with these criteria. Moreover, the majority of Supervisory Board members (Wolfgang Ruttenstorfer, Detlef Bierbaum and Regina Prehofer) meet the criteria of C Rule 54 in that they do not represent the interests of any shareholder with a stake of more than

10 % (UniCredit Bank Austria AG). Some members of the Supervisory Board perform functions in related companies or organisations that have the potential to create a conflict of interests: Helmut Bernkopf, who serves on the executive board of UniCredit Bank Austria AG, is responsible for corporate clients business and the Investment Banking division, whilst Reinhard Madlencnik heads the Real Estate division at UniCredit Bank Austria AG.

CORPORATE GOVERNANCE REMUNERATION REPORT

The remuneration report sets out the principles for de- based on qualitative objectives; in business year 2010, termining payments to the Management Board and the re- these included the organisational adaptation of the Group muneration of the Supervisory Board. It explains the rele- to changing market conditions, the implementation of a vant amounts and structure and indicates the number of sustainability concept and the cross-company corporate shares owned by the members of the Management and governance strategy. Supervisory Boards. The Long Term Incentive (LTI) programme In addition to agreed annual targets, the capital market PAYMENTS TO THE MANAGEMENT BOARD is also calling for mid-term 'incentive plans' that reward share performance (total return) over an extended period. Until the time of the merger in November 2010, mem- To this end, Management Board members have been invi- bers of the Management Board were remunerated both for ted to take part in a revolving LTI programme with a term the functions they performed at CA Immo and CA Immo of three years (per tranche) as from business year 2010. International as well as their managerial services to Ger- Participation requires personal investment limited to man subsidiary Vivico Real Estate GmbH, solely on the 50 % of the basic salary. The investment is evaluated at basis of employment contracts concluded with CA Immo the closing rate as at 31 December 2009, with the number GOVERNANCE CORPORATE (for Vivico this is still the case). Remuneration for Man- of associated shares thereby determined. Performance agement Board members comprises a fixed element and a will be measured according to the following indicators: variable performance-related element, the upper limit of NAV growth, ISCR (interest service coverage ratio) and which is set at 100 % of the fixed annual salary. The level TSR (total shareholder return). Payments will be made in of fixed salaries depends on spheres of responsibility as cash according to the degree to which targets are attained. determined in the schedule of responsibilities. Fixed sala- First-level managerial staff are also entitled to take part in ries are paid in advance in 14 monthly payments. The the LTI programme; for these staff members, the personal main prerequisite for variable remuneration is positive investment is limited to 35 % of the basic salary. For this consolidated net income after minorities. Moreover, op- purpose provisions have been made in a total amount of erational and qualitative targets are agreed annually with € 171.5 K. a view to assessing the level of variable remuneration. From business year 2010 onwards, Management Board Payments to the Management Board in 2010 members and first-level managers have also had the op- Total salaries paid to the Management Board (including tion (subject to appropriate personal investment) of taking auxiliary staff costs, remuneration in kind and travel ex- part in a Long Term Incentive (LTI) programme, which penses) amounted to € 1,051.6 K last year (compared to will enable them to share in the development of the € 718.6 K in 2009). Owing to the business trend of the Group over the medium to long term. past two years, no performance-related component was paid out in 2009 or 2010 in respect of business years 2008 Principles and criteria of profit sharing and 2009; Management Board remuneration was thus en- The variable element of remuneration (linked to net in- tirely made up of fixed salary components. For achieving come) is assessed by the remuneration committee or the the targets agreed in 2010 (which will lead to the pay- full Supervisory Board at the end of the business year, ment of variable remuneration in 2011) reserves amount- checked by the auditor and paid retrospectively. As from ing to € 852.1 K (including incidental expenses) have business year 2010, achievement of the budgeted operat- been set aside. No separate payment is made for accepting ing result (EBITDA) by the CA Immo Group will serve as mandates in Group companies in addition to remunera- the assessment basis for half of the performance-related tion for management functions in CA Immo and Vivico pay element as this takes account of all key operational Real Estate GmbH (with the exception of Supervisory parameters that can be influenced by the Management Board mandates at UBM Realitätenentwicklung AG, in

Board. The other half of the variable remuneration will be which CA Immo has a holding of 25 % plus four shares).

CORPORATE GOVERNANCE

MANAGEMENT BOARD EMOLUMENTS

in € 1,000 Fixed1) Variable2) 2010 Fixed1) Variable2) 2009 Total Total Bruno Ettenauer 423.9 - 423.9 325.0 - 325.0 Wolfhard Fromwald 325.0 - 325.0 320.7 - 320.7 Bernhard H. Hansen3) 302.6 - 302.6 72.9 - 72.9 Total 1,051.6 - 1,051.6 718.6 - 718.6

1) including auxiliary staff costs, remuneration in kind and travel expenses 2) for 2008 and 2009 (paid in 2009 and 2010); no variable remuneration paid 3) Bernhard H. Hansen from 1.10.2009

Pension funds and severance payments Remuneration of the Supervisory Board All members of the Management Board have pension In addition to the reimbursement of cash expenses, all fund agreements, into which annually agreed contribu- Supervisory Board members receive a fixed annual pay-

tions are paid. In 2010, contributions to pension funds ment currently set at € 10 K. The chairman receives dou-

(defined contribution plan) amounted to around € 88.7 K, ble that amount, with the deputy chairman paid one and

compared to approximately € 63.7 K in 2009. In accor- a half times the fixed fee. In addition, members of com- dance with the legal regulations in Austria, the amount of mittees are paid € 500 for each attendance at a committee a legal severance payment is determined by the amount of meeting. Remuneration is paid pro rata where a Supervi- an overall salary as well as length of service, with the ma- sory Board member steps down during the year. There are ximum payout equating to one full year’s salary. Payment no stock option plans for members of the Board. Remune- is forfeited in the event of the employee serving notice of ration for the Supervisory Board is determined annually termination. Payments to form a reserve for severance by the Ordinary General Meeting. Supervisory Board re-

payment claims (defined benefit plan) amounted to muneration of € 79.0 K for business year 2009 (payment

€ 110.3 K in business year 2010 (€ 9.2 K in 2009). Neither in 2010) and € 76.5 K for 2008 (payment in 2009) was ap- CA Immo nor Vivico have any further obligations. No proved. No other fees (particularly for consultancy or bro- other payments were made to former Management Board kerage activities) were paid to Supervisory Board mem- members or their surviving dependants. bers. No loans or advances were paid to either Manage- ment Board or Supervisory Board members.

BY AGM AGREED SUPERVISORY BOARD REMUNERATION

in € 2010 agreed for 2009 2009 agreed for 2008 Wolfgang Ruttenstorfer, Chariman from 13.5.2009 13,712.0 - Helmut Bernkopf, Deputy Chairman from 13.5.2009 10,534.0 - Detlef Bierbaum 10,000.0 10,000.0 Reinhard Madlencnik 11,000.0 10,000.0 Gerhard Nidetzky to 13.5.2009 7,788.0 20,500.0 Christian Nowotny to 13.5.2009 5,966.0 15,500.0 Horst Pöchhacker to 31.7.2010 10,000.0 10,000.0 Regina Prehofer 10,000.0 10,500.0 Total 79,000.0 76,500.0

CORPORATE GOVERNANCE

Directors' dealings As at 31 December 2010, a total of 49,000 CA Immo shares were privately held by Management Board and Supervisory Board members (compared to 13,973 shares in the previous year). In addition, 42,319 shares were acquired by CA Immo employees in business year 2010 in respect of the LTI programme. As at the key date, the company itself did not hold any own shares.

NUMBER OF CA IMMO SHARES HELD BY MANAGEMENT BOARD AN SUPERVISORY BOARD MEMBERS

Number of shares as at 31.12.2010 as at 31.12.2009 Bruno Ettenauer 11,000.0 5,000.0 GOVERNANCE CORPORATE Wolfhard Fromwald 12,000.0 8,973.0 Bernhard H. Hansen 16,000.0 - Wolfgang Ruttenstorfer 10,000.0 - Total 49,000.0 13,973.0

D&O insurance At CA Immo Group level, D&O manager liability insurance with coverage of € 50 m was taken out for the executive bodies (Management Board members, administrative authorities, supervisory bodies and senior executives) of the parent company and all subsidiary companies. The insurance does not provide for any excess.

CORPORATE SOCIAL RESPONSIBILITY CORPORATE SOCIAL RESPONSIBILITY

As a listed real estate company, CA Immo knows that ment. The modern city district is not a monoculture: it professionalism, transparency and fairness constitute the thrives on an intelligent blend of usage types, a mix of essential foundation in our dealings with investors, busi- generations and cultural and social facilities. We play a ness partners, tenants, staff and the general public. We are major part in the planning of public spaces, starting with mindful of economic, environmental and social aspects as our contribution to master planning and continuing with we develop and manage properties, and we regard raising the creation of parks and water features, green concepts, the value of real estate and the company as our duty and public roads and cycle paths. We develop the infrastruc- our goal. ture of entire city districts, including cultural facilities, day-care centres and utility services. When planning and Future-proof business based on a code of values building urban districts, we attach importance to the res- CA Immo is a member of the respACT Austrian business ponsible use of resources, low energy and water consum- council for sustainable development, the leading Austrian ption and minimised emissions. In this way, our pro- company platform for CSR and sustainable development, perties gain long-term value. and bases its conduct on the platform's mission statement, which can be found at www.respact.at/csrleitbild. Fur- Experience has shown that early transparency is vital thermore, CA Immo undertakes to acknowledge and im- for successful project implementation. We involve poten- plement the standards defined in its corporate responsi- tial end users, interest groups and the media in our land bility policy at www.caimmoag.com/csr as a binding on use planning beyond the legally required extent, for ex- day-to-day business activity. We regard these guidelines ample by means of on-site conferences and neighbour- as a basis for the competitiveness and long-term success hood information schemes (for examples, see Berlin Eu- of the CA Immo Group. ropacity, segment report for Germany). This method of active and open communication provides us with a uni- Sustainability que opportunity to adapt real estate to specific local cir- We are developing and managing our properties in ways cumstances, and ensures acceptance and faster imple- that will meet the specific needs of current and future ge- mentation for our projects. Our construction projects are nerations whilst conserving valuable resources. The mar- accompanied by architectural competitions; ideas are in- kets agree: investors and shareholders increasingly regard vited and young talent is promoted. sustainable buildings and districts as a stable source of value. For our customers, the tenants, this approach pays Certification for all new development projects dividends through lower operating expenses and a higher When constructing green buildings, we apply a cata- quality of living. Furthermore, the realisation of entire logue of criteria to ensure economic, environmental, tech- city districts is determining the future quality of life. nical, social and functional quality. This sustainability What we are creating today contributes significantly to standard in the property development field is gradually the profile of major cities such as Vienna, Berlin or Mu- being extended to all new projects of the CA Immo Group. nich. Thus, sustainable business is not only a competition According to a resolution of the Management Board, all factor of the future but a key social responsibility. new Group projects will either to be sustainability-certified or at least constructed in accordance with certifica- In 2010, a company-wide process known as CAST tion standards. (CA Immo Sustainability Tool) was initiated. This identi- fies essential key areas of sustainable business within the As at 31 December 2010, the volume of Group proper- CA Immo Group and makes them clear and transparent ties under development with certification as environmen- for stakeholders. The long-term aim is to control sustaina- tally friendly/acceptable either confirmed or scheduled bility activities in the CA Immo Group, integrate them in- amounted to approximately € 741.6 m. Most recent pro- to our corporate strategy and thus enhance the value of jects include the Tower 185 office building in Frankfurt, our portfolio (for details, please refer to the ‘Research and which is due to be LEED-certified, and TOUR TOTAL in development’ section). Berlin, which is under construction and scheduled for DGNB certification (for details on project development in Accounting for various interests in city district Germany, please refer to the segment report for Germany). development CA Immo invests in and develops projects and proper- The CA Immo Group seeks to secure both internatio- ties that have a long-term significance for urban develop- nally recognised and country-specific property certify-

CORPORATE SOCIAL RESPONSIBILITY

cates, including the seal of quality granted by the German Social responsibility: seeing the bigger picture Sustainable Building Council (DGNB) in platinum, gold CA Immo makes donations to various organisations and and silver. Furthermore, the international LEED seal of associations that actively shape living space in different quality is very important for the CA Immo Group with re- areas of life on a sustainable and non-profit basis. In 2010, gard to newly built properties. From a business point of for instance, we supported an initiative of the Austrian view, the certification approach has paid off: even on the real estate sector by erecting a building in the disaster-hit tight markets of recent years, investors were attracted to area of Haiti. Depending on our project locations, we also certified projects. make local donations; for example, we have supported the ‘Wir in Oberkassel’ association in Düsseldorf which, International expertise exchanged via partnerships amongst other things, oversees construction projects in As one of the leading players in the real estate industry, various parts of the city in the interests of residents and we rely on cooperation with international partners to play citizens. leading roles in new developments in the sector. For instance, CA Immo is a partner and founding member of the Austrian Green Building Council (ÖGNI), which has set itself the aim of developing and promoting methods and solutions for the sustainable planning, construction and use of buildings in Austria. Furthermore, the company was involved in the founding stages of the German Sus- tainable Building Council (DGNB) through its subsidiary Vivico. The company participated in the development of the DGNB seal of quality, which has now established it- CORPORATE SOCIALRESPONSIBILITY CORPORATE self in the German real estate market, through a pilot project.

CA Immo is also a member of the Urban Land Institute (ULI), an international research and education institution with more than 40,000 members that deals with issues of The office tower TOUR TOTAL is scheduled for DGNB urban development and real estate management. Bern- certification hard H. Hansen, a member of the Management Board of CA Immo, acts as the chairman of ULI Germany. In 2010, the focus of ULI Germany was on sustainable urban development, the development of capital markets and financing concepts as well as intersections between the public and private real estate sector. A joint study with the auditing company PricewaterhouseCoopers (‘Emerging Trends in Real Estate Europe‘) met with a great response. In 2010, CA Immo also supported the establishment of the ULI in Austria.

Helping employees succeed as individuals To a great extent, the quality of our work depends on the commitment and skills of our employees. We therefore aim to attract and retain the best people with a graded incentive system and performance-based, variable remuneration. CA Immo offers its employees an attractive working and social environment (with benefits that include private accident insurance) and endeavours to create long-lasting relationships between staff members and the company. Details on the employees of CA Immo are provided in the ‘employees’ section.

MANAGEMENT REPORT THE HISTORY OF CA IMMO

Acquisition of Europolis Group 2011

Acquisition of Vivico Group in Germany 2008

Acquisition Entry of real estate to Serbian package from market the German 2007 state of Hesse 2006

Acquisition of 78 properties in Austria from the former Brau Union property portfolio 2005

1999 209 274 306 437 570 717 1,158 2,116 2,535 3,788 3,516 3,612 5,100* Property assets in € m * incl. Europolis as at 1.1.2011, estimated value

1987 2003 2007 - Founding of CA Immobilien - First investments in Bulgaria - Entry to Serbian market Anlagen AG and Romania - Formation of CA Immo New Europe special fund (CAINE) 1988 2005 - Flotation on Vienna Stock Exchange - Acquisition of 78 properties in 2008 Austria from the former Brau Union - Acquisition of Vivico Group in 1999 property portfolio Germany - First CEE expansion into office properties in Hungary 2006 2009 - Issuance of first public corporate - Issuance of second public 2000 bond corporate bond - First investment in Slovakia - CA Immo International AG floats - Issuance of a reverse convertible on Vienna Stock Exchange bond 2001 - Entry to Russian market - Acquisition of office properties in - Acquisition of real estate package 2010 Poland from the German state of Hesse - Re-Integration CA Immo Inter - Commencement of development national AG projects in Hungary and Czech - Acceptance of the acquisition of Republic the Europolis Group

MANAGEMENT REPORT INVESTMENTS AND FUNDS

CA Immo has positioned itself as an investor in com- the consolidated financial statements of CA Immo. As at mercial real estate, focusing on the Central European re- key date 31 December 2010, the market value of its prop- gion through the twin business areas of investment pro- erty assets stood at € 879 m. perties and project development. The company's activities are focused in Austria, Germany, Central Eastern Eu- Vivico Real Estate GmbH rope (CEE), South Eastern Europe (SEE) and Russia. All Vivico Real Estate GmbH, the German company that CA Immo business in Germany is managed by Vivico Real specialises in urban development, has served as the op- Estate, the subsidiary company acquired early in 2008. erational platform for the Group's activities in Germany The subsidiary CA Immo International AG, which had (project development and asset management) since 2008. handled the Eastern European activities since 2006, mer- Vivico, which was previously a collecting society for rail- ged with the parent company CA Immo in November way properties owned by the German state, has extensive 2010 with retrospective effect to 31 December 2009. The expertise in developing inner city properties formerly de- project development area has essentially been managed voted to industrial or railway purposes. Projects on these by the CA Immo New Europe (CAINE) special fund, in development sites are at various stages of preparation and which CA Immo holds a 60 % stake, since 2006. Given will be rapidly progressed to construction readiness over that the commitment period during which new projects the coming years. This type of urban development – turn- can be initiated has already ended, all new undertakings ing brownfield sites without land use plans into comple- will be implemented directly by CA Immo itself (where ted urban districts – has high potential for added value the fund partner decides against individual realisation). and ideally complements the more stable core business of The acquisition early in 2011 of Europolis AG, a subsidi- managing investment properties. Vivico Real Estate ary of the Austrian Volksbank specialising in real estate, GmbH is also fully consolidated in the consolidated fi- has raised the profile of the company in its core region of nancial statements of CA Immo. Eastern Europe. The acquisition will be reflected on the balance sheet on 31 March 2011. The property assets of Vivico Real Estate GmbH mainly comprise properties under construction and undeveloped Vivico AG plots alongside a portfolio of properties intended for tra- MANAGEMENT REPORT CA Immo has been investing in Germany since the au- ding or sale (with a market value of € 1,157 m as at 31 De- tumn of 2006. Most of its investment properties in Ger- cember 2010). On completion, development projects are many, including the package of properties acquired from either sold, transferred to the company's asset portfolio or the state of Hesse in 2006, are maintained by Vivico AG, sold to property developers as construction-ready real in which CA Immo has direct and indirect holdings estate. More information on the German portfolio is pro- amounting to 100 %. Vivico AG is fully consolidated in vided in the segment report.

ORGANISATIONAL STRUCTURE OF THE CA IMMO GROUP

MANAGEMENT REPORT

At Vivico, all tasks critical to the creation of value are The total volume of the fund was originally envisaged at performed by the company's own staff. These include de- € 1 bn, of which € 400.0 m was to be made available as veloping urban district concepts, land development (in- equity. In view of the changed market conditions, how- cluding site planning) and the preparation of sites for sale. ever, investment activity fell far short of the levels origi- With branch offices in Frankfurt/Main, Berlin and Mu- nally intended; agreement was reached with the co-part- nich, the Vivico organisation meets the requirements of ners only to proceed with development projects that were local presence as well as cross-company management and already in progress. As a result, only one third or so of the support. Every site functions as a profit centre, generally maximum amount had actually been requested by 31 De- taking sole responsibility for the implementation of its cember 2010. As at the balance sheet date, the market va- projects. Construction management – which encompasses lue of the fund portfolio was approximately € 134 m. project monitoring, tendering, contract awarding, con- Three projects are in progress at the present time; another struction supervision and general planning – is carried three have been finalised since the fund was set up and out by the Vivico subsidiary omniCon (acquired in July will henceforth be held directly by the fund as invesment 2008), which also performs these services for third parties. properties. More details are provided in the segment re- In 2007 Vivico, in partnership with the Feuring Group, port. established Viador, a company that specialises in concept development for hotels (another element in urban devel- Investment in UBM

opment project work). Its service range includes site in- CA Immo has a 25 % holding plus four shares (vetoing spections, analyses of the hotel market and feasibility stu- minority holding) in the listed property developer UBM dies as well as business planning based on these. External Realitätenentwicklung AG, which is based in Vienna. service providers are brought in to carry out certain other Aside from CA Immo, the main shareholder in UBM is

activities, which enables the cost structure to be adapted the PORR Group with a holding of around 41 %. With its flexibly to varying workloads. track record of development expertise in the CEE region, UBM is an ideal partner to the CA Immo Group. The sha- CA Immo New Europe property fund red Poleczki Business Park project in Warsaw is being CA Immo has been managing its development projects realised under the terms of a 50:50 joint venture between through this project development fund since the start of the CA Immo New Europe project development fund and 2007. The investment strategy of the fund, which is struc- UBM. Following a construction period of just under two tured under Luxembourg law as a SICAR (societé d’inves- years, phase one – comprising two separate buildings tissement en capital à risque), is aligned towards real es- with very high occupancy rates – was completed at the tate development projects in Eastern and South Eastern end of quarter two 2010. A modern office district with a

Europe. Until the merger in November 2010, a 60 % stake total effective area of 200,000 sqm is scheduled for com- in the fund was held by CA Immo International, which pletion by 2015. Investment in the first building section was also a listed CA Immo subsidiary at the time. As a re- amounted to some € 110 m, with the total construction sult of the merger, this shareholding was transferred to project costed at around € 250 m. Preparations are cur- CA Immo under the terms of universal succession; four rently under way for construction phase two. UBM is also institutional investors at home and abroad account for the involved in the Airport City St. Petersburg project in St.

remaining 40 %. The planned lifespan of the fund, which Petersburg, where it is contributing both capital and, in is managed by a CA Immo subsidiary, is seven years in particular, its expertise as a project developer. In 2010,

total (with the option to extend). The commitment period CA Immo received a dividend for 2009 of € 750 K for its

(in which new projects can be initiated) ended on 31 holdings in UBM, corresponding to a return of 3 % on the December 2009. capital invested.

MANAGEMENT REPORT ECONOMIC ENVIRONMENT

THE CYCLICAL TREND AUSTRIA 1

The real estate sector is closely intertwined with the ma- Evidence of growth was seen in the Austrian economy: croeconomic developments on its markets. As regards the economic output expanded by 2.0 %, largely as a result of demand for commercial real estate in particular, econo- exports (particularly to Germany, Austria's rapidly grow- mic growth is proving to be a determining factor. The re- ing trading partner; cf. GDP decrease of 3.9 % in 2009). cent recessionary years have thus been as challenging as However, domestic demand remained somewhat muted. might be expected. Not only was the investment market Given the weak development of actual earnings, con- brought to a halt, but companies shelved their expansion sumption by private households remained deeply re- plans, significantly cutting the demand for office space. strained. Although incomes are set to rise again this year, private consumer spending is not expected to increase In 2010, nearly two years after the financial and econo- accordingly because of government consolidation meas- mic crisis took hold, activity in the global economy ures and planned tax rises. picked up pace once again, sparking signs of recovery and renewed growth as the year progressed. Expansion on the From the outset, the economic crisis impacted only mi- global markets was driven by the emerging nations such nimally on the Austrian labour market. The unemploy- as China and India in particular. However, the pace of ec- ment rate, which was 4.3 % in the year preceding the cri- onomic recovery varied from one country to another. sis (2007), stood at 5.0 % in December 2010, rising by

0.5 % over the year as a whole. This confirms Austria, Widely divergent economies were also the story of the along with the Netherlands and Luxembourg, as the coun- upturn within the eurozone. Germany took centre stage as try with the lowest unemployment level in the eurozone. the most positive contributor, recording extremely dyna- The inflation rate was 1.7 % at the end of 2010; the Aus- mic growth. Austria followed suit, albeit with more mo- trian National Bank (OeNB) is predicting that the rate will derate expansion figures. By contrast, growth in France – break the 2.0 % barrier in 2011. the second largest economy in the eurozone – slowed considerably. On the margins, Greece, Ireland, Portugal MANAGEMENT REPORT and Spain found themselves mired in crisis. GDP rose in 1 Sources: Eurostat, data request 15.02.2011; Austrian National Bank the eurozone by an average of 1.7 % during 2010; the inflation rate stood at 2.2 % in December.

MANAGEMENT REPORT

GERMANY 1 CEE/SEE 2

Germany has recovered from the crisis surprisingly Economic development was very patchy in the CEE and quickly. Although forecasts of GDP growth to the midway SEE states during 2010. The Central and Eastern Euro- point of the year were even more modest than previously, pean nations of Poland, the Czech Republic and Slovakia growth picked up speed as the summer progressed. Re- (for whom Germany is a key trading partner) benefited

markably, despite a steep GDP fall of 4.7 % in 2009, the from German economic growth last year in the shape of a

economy again expanded by 3.6 % in 2010. The economic higher export volume. In Slovakia, economic power ex-

recovery was chiefly driven by the country's high export panded by a total of 4.1 %; GDP rose by 3.5 % in Poland

ratio; there was world-wide demand for German high- and by 2.4 % in the Czech Republic. The economy broad- tech products, for example, especially on the booming ly stabilised in Bulgaria, Hungary and the Baltic states in markets of Asia. 2010; Romania and Croatia remained deep in recession, however, mainly on account of structural factors such as The upturn in foreign trade also had a positive effect on their trade orientation and the composition of export the domestic economy, as investment again rose substan- goods, but also because of internal imbalances (high un- tially. The collapse of the labour market predicted at the employment, low consumption and so on) and problems start of the year also failed to materialise; the unemploy- with debt and refinancing in the public finances.

ment rate was at 6.7 % at the end of 2010. The improving employment figures for the whole year boosted consumer confidence in turn, and private consumption rose particularly strongly towards the end of 2010. 2 Sources: Austrian National Bank, Eurostat, ECB Monthly Bulletin, OECD

1 Sources: Deutsche Bundesbank, Federal Statistical Office, Federal Em- ployment Agency

MANAGEMENT REPORT

In the early part of the year, the Russian economy was OUTLOOK benefiting from the rise in the oil price around the world; GDP growth, which had been negative in 2009, turned We expect the European economy as a whole to con- around again during the first six months of 2010. Expan- tinue to recover during 2011. However, the upturn will sion slowed in the second half of the year, however, part- depend on growth engines like Germany, and in particu- ly because raw material prices remained short of expected lar a sustained revival in its domestic economy. For this levels throughout the year, and partly because the moder- reason, economic research institutes are predicting only ate expansion in credit held back the economic recovery. moderate growth of 2.3 % for 2011. The Austrian National

The OECD forecast GDP growth of 3.7 % for Russia by the Bank expects the Austrian economy to carry on accelerat- end of the year. ing this year; at present, GDP is forecast to rise by 2.1 %. Improving growth figures are also expected on the CA Immo markets of Central and Eastern Europe, albeit to MONEY MARKET AND INTEREST RATE strongly varying degrees. ENVIRONMENT Inflation rates are likely to maintain their upward path For most countries, economic stabilisation in 2010 went in the various countries. The inflation rate in the euro- hand in hand with a sharp rise in national debt; the costs zone is likely to remain around the 2 % level in 2011 be- of combating the financial crisis were a significant factor cause of the fluctuating prices of crude oil and food. The behind these increases. At European level, this develop- interest rate trend on CA Immo’s markets will continue to ment impacted most severely on countries like Greece, be influenced by the political response to the debt crisis Spain, Portugal and Ireland, where growth is low and in Europe, the interest rate policy of the European Central debt levels were already high. Around the middle of the Bank and the future of the banking sector following im- year, the public finance problems in these nations began plementation of new regulatory requirements such as to pose a major threat to the stability of the euro as the Basel III. 'Greek crisis' ballooned into a crisis of the euro. However, government intervention and consolidation measures in MANAGEMENT REPORT the public sector succeeded in reassuring the financial markets. In May 2010 – at the height of the crisis in Greece – the ECB and central banks started buying government bonds from European countries for the first time since the launch of the euro in an attempt to regain the trust of the markets. By the end of the year, however, the ECB had not managed to neutralise the additional liquidity completely.

The value of the euro declined significantly against almost every other currency in 2010, losing around 9 % against the US dollar. In the second year since the onset of the crisis, the base rate of the European Central Bank again stood at 1.0 %. As measured by the three month EURIBOR, the money market rates critical to variable refinancing remained at record low levels throughout most of last year. In the final quarter of 2010, however, they began to rise steadily to the level of the European Central Bank refinancing rates. Long-term interest rates, including the 10 year swap rate which is relevant to CA Immo, remained at their lowest levels in quarter three. Since then, however, they have gradually risen.

MANAGEMENT REPORT PROPERTY MARKET AUSTRIA

The positive effects of the slow but steady upturn in the of last year. Most leasing activity was in the scale of Austrian economy that has been taking place since the 1,500 sqm or less in the early part of 2010, but larger- end of last year have also been felt on the real estate mar- scale lettings came back into the picture as the year pro- ket. The transaction market received a boost from the gressed. brightening of the economic environment combined with stable rent levels and the continuing appeal of direct pro- New office space of between 165,000 and 185,000 sqm perty investments. The lettings market was characterised was created (including refurbishments), the lowest volu- by increasingly predatory competition to the advantage of me for around nine years. On account of the financial cri- modern premises and a continual increase in large-scale sis and the associated collapse in demand, scores of plan- letting agreements. Despite the encouraging economic ned office projects – most of which involve top quality signs, however, many market players continue to be high- developments in good locations – have been put on ice ly risk-averse, with efficiency and flexibility emerging as for the time being. The levels of pre-letting that would en- priorities in the choice of location. able such projects to be restarted have not been attained thus far. Only a handful of speculative projects were laun- The investment market ched in 2010, which shows that the availability of office The Austrian investment market remains stable, main- premises for clients requiring short-term lets is currently taining its consistent expansion in 2010. The transaction severely restricted. As demand picks up again, therefore, volume in Vienna had risen to € 560 m by the midpoint the vacancy rate is expected to decrease and rent levels

of the year, almost 50 % up on the same period of the pre- are likely to rise; this is already apparent from the deve- vious year. Total turnover amounted to approximately lopment in peak rents, which increased on the previous € 1.6 bn by year end, a figure largely driven by Austrian- year's values to stand at between € 21/sqm and € 23/sqm based private foundations and institutional investors at the end of the year. Average rent levels are largely un- buying properties in prime CBD locations. Foreign invest- changed at € 8/sqm to € 15/sqm, depending on location. tors accounted for around a third of the transaction total, The majority of lease contracts were also concluded in focusing their activities on core-standard real estate (long- this price segment. term rental agreements and tenants with strong creditworthiness). As the year progressed, a distinct shortage of Retail 2 such properties became apparent, pushing up purchase Rental rates on retail premises in prime (A1) locations prices and marginally reducing peak yields in turn: by the also remained stable in 2010, although rates fell in B-class

end of the year, the peak yield of 5.25 % was well below sites as vacancy increased. As they expand, international

the previous year's value (5.5 % in the final quarter of retailers and chain stores are focusing on commercial are- 2009). Yields also fell slightly in average locations. as with high footfall where peak rents of up to € 220/sqm are attainable for retail space. Integrated shopping centres The office property market 1 have been well received by the market and weathered the The office market in Vienna was very slow to gather mo- economic storm well; no major changes in vacancy levels mentum in the early part of the year. As 2010 progressed, or rental rates have been reported. Given that the retail however, turnover for office space began to increase. By market in Austria is very close to saturation point (partly the end of the year, lettings performance amounted to because of the high number of shopping centres), the

some 275,000 sqm of office space, a rise of 4 % on the fi- trend in recent years has shifted to the restoration, re- gure for the end of 2009. The influx and expansion of structuring and expansion of existing portfolios. businesses played a relatively small part in this development: the lettings volume was mainly generated by cor- The residential property market 3 porate relocations within the city, generally from older For Austria, 2010 was the year of the residential market. buildings not suited to market needs to more modern and In particular, as the financial crisis has brought about a efficient office properties (particularly green buildings resurgence of interest in residential property investment, and properties with LEED certification). As a result, va- the value of building plots for detached houses and apart- cancy was mainly accounted for by older buildings let ment houses in inner cities has increased in all federal either with difficulty or not at all. The vacancy rate fell states. This has long since more than compensated for the

slightly from 5.8 % at the end of 2009 to 5.5 % at the end 2 CB Richard Ellis, Retail Market Austria, Autumn 2010 3 1 Sources: EHL Office Marke Report Autumn 2010; CB Richard Ellis, EMEA Sources: Rental price comparison list www.immobilien.net; Otto Immobi- Yields and Rents Q4 2010 lien Apartment House Report 2010

MANAGEMENT REPORT

minor fall in prices experienced in the autumn of 2008. In the city. However, investors are also showing interest in Vienna especially, demand for apartment houses in good sites on main access roads and close to transport hubs locations has far outstripped supply. Inner city properties such as the Westbahnhof and Südbahnhof railway sta- in this segment are commanding peak values of € 3,200– tions, the latter of which is set to reopen as a new and 5,100/sqm. Rental rates, by contrast, did not develop as expanded station in 2015. strongly: average rents were offered at € 14–16/sqm in central Vienna and in the range of € 8–14/sqm in other Travellers remained cost-conscious in 2010, which areas. benefited budget hotels in particular. The average room

rate (ARR) in Vienna increased by 13 % on the previous 1 The hotel property market year, reaching 72 % between January and September 2010. Vienna achieved 9.1 million overnight stays in the pe- However, concessions on rooms rates were needed to riod to October 2010, a figure indicative of record expan- bring about the high occupancy level. The revPAR (reve- sion. The main reasons for travel to the capital were lei- nue per available room) averaged € 65 over the first nine sure, cultural tourism and conference attendance. Central months. The greater number of hotel businesses has in- Vienna remains the most sought-after location for interna- creased pressure on prices, which will necessitate market tional hotel chains, which are already well represented in adjustments in all segments over the years ahead.

1 Sources: Christie & Co, Hotel Market Vienna, October 2010; STR Global in Deka Immobilienmotor 2011; Metzger Realitäten Gruppe

MANAGEMENT REPORT

Vienna, Wolfganggasse 58-60

MANAGEMENT REPORT PROPERTY MARKET GERMANY

In 2010, the rapid recovery of the German economy The office property market 3 combined with the return of investor confidence in the Given that it always takes time for office sector rental long-term attractiveness of Germany as a place to invest markets to react to economic upturns, demand for office

led to an 83 % increase in investment turnover in com- space remained modest in 2010. Rising demand is only mercial real estate compared to the previous year. In par- expected to become apparent this year: as the economic ticular, the restricted supply of low-risk products proved picture brightens, companies will take on more staff and to be the limiting factor in the face of strong demand for thus require more office space. Even allowing for this, core properties.1 The first signs of recovery also emerged though, turnover of premises in 2010 was comfortably on the rental market, with encouraging levels of turnover above the previous year's level. Total office space of more and stable or slightly rising rent levels. than 2.2 million sqm was let in the CA Immo cites of Ber- lin, Düsseldorf, Frankfurt, Cologne and Munich. Berlin The investment market 2 and Munich accounted for the greater part of the turnover The sale of the OpernTurm tower in Frankfurt's banking with some 541,000 sqm respectively 505,000 sqm of of-

district for approximately € 550 m, the last big transac- fice space let, followed by Frankfurt (up 34.3 %). tion on the German investment market in 2010, symbol- ised the upturn on the commercial property market in Office premises under construction declined significant- Germany. The transaction volume increased during the ly in 2010: around 1,331,000 sqm of office space is cur- fourth quarter in particular, when turnover amounted to rently under construction in the five CA Immo sites, of

€ 6 bn; the overall figure for the year (€ 19.6 bn) was which some 60 % is still available. At the same time, va-

some 85 % above the previous year's total. The value of cancy levels in properties suited to the market declined transactions for the six main property centres of Berlin, significantly, whilst structural vacancy was very slow to Düsseldorf, Frankfurt, Hamburg, Cologne and Munich decrease. Given the lower completion volumes scheduled

stood at € 11.1 bn, 90 % above the value for 2009. Foreign for the next few years, the supply of modern office prem-

investors in particular (accounting for 37 % of the total ises will decrease accordingly in the main German office investment volume) returned their attentions to the Ger- centres. Rent levels are believed to have bottomed out in man market in 2010. With a low interest rate making for 2010. The restricted supply of modern office space is ex- favourable investment conditions and substantial levels pected to drive a rise in peak rents over the next few of economic expansion, German real estate was highly months; as at year end, they ranged from € 20.90/sqm in lucrative in 2010, especially for pension funds, open-end Berlin to € 38.50/sqm in Frankfurt. and closed-end funds and private equities. Retail 4 Steep turnover increases were achieved in all asset clas- The trend towards high quality, inner city locations ses in 2010. Retail properties accounted for most transac- (which became a feature of the retail property market in

tions (generating turnover of € 7.8 bn, or 40 % of total sa- Germany in recent years) continued in 2010. Commercial les) followed by office properties (producing turnover of rents in A1 locations increased marginally as a result,

€ 7.3 bn, equivalent to 37 % of total sales). Demand was bringing the average rate in the top 20 retail sites in Ger- particularly high for buildings almost fully let in prime many to € 125/sqm. The highest rents for retail premises locations with established and reliable tenant structures (€ 290/sqm) were charged in prime locations in Munich. (i.e. core properties). The restricted supply of core proper- As investors were increasingly attracted to retail properties for investors served to suppress property yields, ties, peak yields in the very best locations fell as 2010 which fell sharply in prime locations within the main of- progressed. As regards shopping centres, the average peak

fice centres (to below the 5 % mark in some cases). Peak yield in the 'big seven' locations was 5.3 % at the end of

yields ranged from 4.85 % in Munich and Hamburg to 2010. Under the terms of a joint venture, CA Immo is de-

5.3 % in Cologne and 4.9 % in Frankfurt. veloping an integrated shopping centre in Frankfurt, whe-

re rental rates on new lettings rose by around 8 %. Clearly, Frankfurt retains significant market potential in this seg- 1 CB Richard Ellis, Germany Investment Quarterly Q4 2010 ment. 2 Source: BNP Paribas Real Estate 2011

3 Sources: BNP Paribas Real Estate 2011; gif e.V. Results of the annual survey 2010 4 Sources: IVD 2010/2011; Jones Lang LaSalle 2011

MANAGEMENT REPORT

DEVELOPMENT OF OFFICE MARKETS FOR CA IMMO PRIME LOCATIONS IN GERMANY 2010

2010 2009 Change in %

Berlin Take-up in sqm 541,000 444,000 21.8% Vacancy in sqm 1,500,000 1,500,000 0.0%

Vacancy rate in % 8.3 8.4 – 1.2% Peak rent in €/sqm net exclusive 20.9 20.1 4.0% Average rent in €/sqm net exclusive 12.2 10.7 14.0%

Düsseldorf Take-up in sqm 336,600 243,100 38.5% Vacancy in sqm 829,200 760,000 9.1% Vacancy rate in % 11.1 10.4 6.9% Peak rent in €/sqm net exclusive 23.5 22.8 3.1% Average rent in €/sqm net exclusive 14.3 13.7 4.4%

Frankfurt Take-up in sqm 470,000 350,000 34.3% Vacancy in sqm 1,752,000 1,690,000 3.7%

Vacancy rate in % 14.7 14.3 2.4% MANAGEMENT REPORT Peak rent in €/sqm net exclusive 38.5 35.0 10.0% Average rent in €/sqm net exclusive 20.0 20.0 0.0%

Cologne

Take-up in sqm 218,000 250,000 – 12.8%

Vacancy in sqm 625,000 665,000 – 6.0%

Vacancy rate in % 8.4 9.0 – 6.9% Peak rent in €/sqm net exclusive 21.6 21.4 0.9%

Average rent in €/sqm net exclusive 11.3 11.5 – 1.7%

Munich Take-up in sqm 504,900 453,800 11.3% Vacancy in sqm 1,178,400 1,020,000 15.5% Vacancy rate in % 8.5 7.7 10.4% Peak rent in €/sqm net exclusive 33.9 33.9 0.0% Average rent in €/sqm net exclusive 17.5 16.9 3.5%

Note: All floor space data given as rentable area according to gif, conversion factor: gross floor area x 0.85. Source: gif e.V., Annual Survey of Office Markets 2009 and 2010; correct as at January 2011.

MANAGEMENT REPORT

The residential property market 1 The hotel property market 2 Demand (and therefore pricing) on the residential mar- The economic recovery of 2010 was mirrored only to a ket in Germany conform to a clear geographical pattern degree on the German hotel market. Although the number that was reinforced in 2010: the larger and more econo- of overnight stays rose again, many companies and pri- mically powerful the city and the better the micro-climate vate travellers remained cost-conscious, and hotels in the within that city, the greater the price increase. Residential budget segment were the main beneficiaries of the upturn; market rates thus tended to rise in the main urban areas their encouraging turnover levels established budget ho- of Germany. tels in Germany as popular targets for institutional investors as well. Establishments in the four- and five-star seg- Rents for apartments in new buildings in the mid-mar- ment also gained market share at the expense of the mid-

ket segment rose by an average of 2.4 % (to € 6.41/sqm). range segment thanks to a more aggressive pricing policy Good quality new developments increased in value by and optimised cost-effectiveness.

2.3 %, with existing apartments rising 1.4 % to 2.2 %; similar rates of increase were reported in the owner-occu- The figures for overnight stays increased sharply in Ber-

pied segment. The city with the highest prices is still Mu- lin as average occupancy rose by 2.7 % to stand at 68.9 % nich, where residential rates can reach € 3,900/sqm. The in September 2010; the average revenue per available

short supply of residential units in central locations, the room (RevPAR) increased by 11.8 % to € 60.1. With the rise in single-person households and the low construction number of internationally run establishments on the rise, rate are the factors behind the price trend. Forecasts for Berlin remains the first choice for international hotel the residential market produced by the Federal Institute operators seeking to enter the German market. Frankfurt for Research on Building, Urban Affairs and Spatial De- and Munich also reaped the benefit of the upward figures velopment have indicated that residential construction for overnight stays. At the end of quarter three 2010, ave-

activity is unlikely to increase in the years ahead. In the rage occupancy in Frankfurt was up 13.4 % to 64.8 % in growth regions of Germany, this could mean an even total. Given that business trips account for most travel to tighter situation on the residential market that will force Frankfurt, this is another clear indicator of economic up the price of residential space still further. recovery.

1 Sources: IVD 2010/2011; BBSR 2010 2 Source: STR Global in DekaBank Immobilienmotor 2011

FRANKFURT, Skyline Plaza Shopping Centre, Visualization

KONZERNLAGEBERICHT PROPERTY MARKET EASTERN EUROPE

Although the CEE region was harder hit by the econo- activity virtually ground to a halt on the smaller SEE mar- mic crisis than more stable markets such as Germany, real kets such as Bulgaria, Croatia and Serbia. On these mar- estate investment accelerated at a relatively faster pace in kets, peak yields accordingly remained at the level of the

2010. Given the fact that economic performance varies so previous year (10.0 % in Belgrade and Sofia); the peak widely across Eastern Europe, though, the investment yield in Zagreb fell by 20 base points. With a peak yield market was also inconsistent. Around three quarters of all of 9.0 %, Romania was alone in reporting a decrease of 50 property investment was transacted in Poland and Russia, base points. whilst liquidity remains especially severely restricted in South Eastern Europe. The gap between the CEE and SEE The office property market 2 is also reflected in the development of peak yields and The uneven economic development across Eastern Eu- rental rates. rope was mirrored on the region's office markets in 2010. On the established CEE markets (and especially Warsaw The investment market 1 and Prague), lettings performance and thus rental rates Turnover of some € 5 bn was reported on the Central started to rise again during 2010, albeit from a low base. and Eastern Europe (CEE) investment market in 2010, an At the same time, the mood on the rental markets of increase of 90 % on the previous year. Most transactions South Eastern Europe remained cautious. were concluded in Russia and Poland, which between them contributed 74 % of total turnover. Price increases The Polish economic recovery was reflected on the of- were most apparent on the Russian investment market. In fice market in Warsaw, where peak rents rose by 9 % on Moscow as well as St. Petersburg, peak yields fell by 150 the previous year to stand at € 25/sqm. Similar growth and 400 base points in turn to stand at 10.50 % and patterns were reported on the Russian markets of Moscow

12.0 % respectively. In Warsaw and Budapest, peak yields and St. Petersburg. The peak rent level in Moscow rose by on office properties declined by 50 base points to stand at 6 % to approximately € 40/sqm (US$ 673/sqm p.a), whilst

6.25 % and 7.50 % respectively. Yields were also down in in St. Petersburg the office market also gained momentum

Prague and Bratislava, standing at 6.75 % and 7.25 % res- in the second half of the year, with rent levels rising by MANAGEMENT REPORT pectively at the end of the year. By contrast, investment some 7 % to roughly € 37/sqm (US$ 598/sqm p.a.).

1 Sources: CB Richard Ellis (CEE Property Investment; EMEA Rents an 2 Source: CB Richard Ellis, EMEA Rents an Yields Q4 2010 Yields Q4 2010)

OFFICE MARKET TRENDS

Peak rent Vacancy rate Peak yield as at Yield Changes December 2010 in €/sqm Trend

Moscow 40 19% 10.50% St. Petersburg 37 23% 12.00% Warsaw 25 7% 6.25% Prague 21 13% 6.75% Budapest 20 21% 7.50% Bukarest 19.5 18% 9.00% Sofia 14 24% 10.00% Belgrade 16.5 25% 10.00% Bratislava 17 11% 7.25%

Correct as at fourth quarter 2010 Sources: Jones LangLaSalle European Office Property Clock, CA Immo, CB Richard Ellis EMEA Rents and Yields Q4 2010

MANAGEMENT REPORT

Peak rents remained at around prior year levels in Pra- 2010, peak rents stood at roughly € 55/sqm in Poland and gue (€ 21/sqm), Bratislava (€ 17/sqm) and Budapest € 50/sqm in the Czech Republic. (€ 20/sqm) but fell in Zagreb, Sofia and Belgrade. The hotel property market 2 Retail 1 Each year, around 90 million people travel to the CEE The number of shopping centres being built, especially region. The expansion has been stimulated by low-cost in the CEE and SEE nations, has increased sharply since airlines and government investment in infrastructure. 2009. However, the density of shopping malls depends Business travellers remained the most important client heavily on general economic health and varies greatly segment for the CEE region in 2010. Although this group from one country to another. Poland and the Czech Repu- is still much more cost-conscious than it was prior to the blic can point to many such centres thanks to the ongoing crisis, hotel performance indicators point to a slight reco- development of new projects, whereas Russia, Romania very for the region in 2010. In the CA Immo location of and Bulgaria remain under-resourced in overall European Prague, for example, the occupancy rate increased by

terms. Owing to reduced spending capacity, rents on re- 9.3 % to 62.2 % between January and September 2010; to tail premises fell during 2010 on almost all markets of a lesser degree, the average revPAR (revenue per available

Central and Eastern Europe. Although Hungary was once room) also increased by 2 % to € 65. Over the same period, again particularly severely impacted, the high number of the same figures also began to rise again in Moscow (oc-

shopping centres meant that the prospects of significant cupancy up 10 % to 62 % and revPAR up 9 % to € 87).

rent rises in the retail area were also small in countries Although average occupancy rose by 10.5 % to 59 % in with generally positive economic trends such as the Budapest, the average revenue per available room in- Czech Republic and Poland. As at the end of quarter three creased only marginally to € 37.

1 Source: DekaBank Immobilien Monitor 2011 2 Source: STR Global in DekaBank Immobilien Monitor 2011

BELGRADE, Sava Business Center

MANAGEMENT REPORT PROPERTY ASSETS

The CA Immo Group is active in Austria, Germany and dates for construction account for approximately € 282 m; Eastern Europe. The Group's core business is commercial long-term real estate reserves account for € 460 m. real estate, with a clear focus on office properties; it deals with both investment properties (76 % of the total portfo- The Group generated rental income of € 164.4 m in 2010, lio) and development properties (22 % of the total portfo- compared to € 177.0 m in 2009. On the basis of annua- lio). Properties intended for trading and property assets lised rental revenue, the asset portfolio produced a yield held for sale each account for around 1 % of property of 5.8 % (6.5 % in 2009). Vacancy by surface area was assets. 11.5 % as at 31 December 2010, with the economic occu-

pancy rate at 88 % (91 % on 31.12.2009). The decline in In the consolidated statement of financial position for lettings resulted from the vacation of premises by Sie- 2010, the CA Immo Group indicates property assets of mens at the Erdberger Lände site as scheduled, the addi- some € 3.6 bn (against € 3.5 bn on 31.12.2009). Of this tion to the portfolio in 2010 of the completed Poleczki total, investment properties (including own used proper- Business Park project in Warsaw and the acquisition un- ties and properties intended for trading or sale) accounted der the terms of a forward purchase agreement of the for € 2.8 bn (78 % of the total portfolios) and investment Megapark office property in Sofia. In like-for-like compa- properties under development represented € 790.9 m rison (excluding the aforementioned special cases), eco-

(22 % of the overall portfolio). nomic utilisation was virtually unchanged at 90 % as at 31 December 2010. As at key date 31 December 2010, the Group's asset portfolio comprised a total rentable effective area of DISTRIBUTION OF BOOK VALUE € 1.5 m sqm, of which offices accounted for some 62 % BY TYPE and commercial/storage space represented 24 %. The remainder of the floor space is utilised for business (7 %), Investment properties 76% hotel (5 %) and residential purposes (2 %). On the basis of market value, around 49 % of investment properties are MANAGEMENT REPORT in Germany, 26 % are in Austria and 25 % are in the Trading 1% CEE/SEE region.

Property assets As regards development projects, approximately 3 % of held for sale 1% the company's developments and strategic land reserves are in Austria and 94 % are in Germany; projects in CEE and SEE countries as well as the CIS account for the re- Projects 22% maining 3 %. Development projects in Germany have a total market value of € 741.6 m. Of this total, projects that are either under construction or have imminent start

MANAGEMENT REPORT

OVERALL PORTFOLIO

Austria Germany Eastern and South Total East Europe

Property assets 31.12.2009 € m 739.1 2,102.7 674.0 3,515.8 Acquisition of new properties € m 0.0 7.0 34.4 41.5 Investments in current projects € m 0.6 239.5 18.2 258.4 Investments in the portfolio stock € m 14.4 7.1 4.4 25.9

Change from revaluation/impairment € m 17.9 39.3 – 12.3 44.8

Disposals € m – 36.0 – 229.8 – 8.4 – 274.2

Property assets 31.12.2010 € m 736.0 2,165.9 710.3 3,612.2 Annual rental income1) € m 39.0 79.8 45.5 164.3 Annualised rental income € m 36.1 78.9 50.2 165.2 Economic vacancy rate for investment properties % 18.2 1.8 18.8 11.8 Yield (investment properties) % 5.1 5.3 7.4 5.8

1) incl. annual rental income from properties sold in 2009 (€ 8.1 m)

DISTRIBUTION OF BOOK VALUE DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY REGION BY MAIN USAGE

Office 74% Austria 20%

Retail 2%

Eastern/South Eastern Europe 20% Hotel 6%

Residential 7%

Commercial Germany1) 60% and storage 7%

Other 4%

1) The segment Germany includes a property in Switzerland.

MANAGEMENT REPORT

PROPERTY ASSETS BY BALANCE SHEET ITEMS

Austria Germany Eastern/South East Total Europe Investment properties Usable space (excluding parking spaces) sqm 363,789 751,130 337,377 1,452,296 Number of parking spaces No. 4,234 8,191 5,922 18,346 book value € m 703.7 1,334.9 677.6 2,716.2 Rental income (actual) € m 38.9 63.2 45.5 147.6 Rental income (annualised) € m 36.1 70.8 50.2 157.1 Economic vacancy rate % 18.2 1.8 18.8 11.8 Gross yield % 5.1 5.3 7.4 5.8 Net yield % 4.7 4.1 5.4 4.6

Investment properties under development Usable space (excluding parking spaces) sqm 5,047 105,049 38,912 149,008 Number of parking spaces No. 20 639 761 1,420 book value € m 21.6 741.3 27.7 790.6 Rental income (actual) € m 0.0 8.5 0.0 8.6 Rental income (annualised) € m 0.0 7.2 0.0 7.2

Property intended for trading Usable space (excluding parking spaces) sqm 0 20,807 0 20,807 Number of parking spaces No. 0200 0 200

book value € m 0.0 45.3 0.0 45.3 MANAGEMENT REPORT Rental income (actual) € m 0.0 7.9 0.0 7.9 Rental income (annualised) € m 0.0 0.9 0.0 0.9

Own used properties Usable space (excluding parking spaces) sqm 2,879 820 0 3,699 Number of parking spaces No. 40 3 0 43 book value € m 10.4 3.2 0.0 13.6

Assets held for sale Usable space (excluding parking spaces) sqm 00 0 0 book value € m 0.3 41.2 5.0 46.5 Rental income (actual) € m 0.1 0.2 0.0 0.3 Rental income (annualised) € m 0.0 0.0 0.0 0.0

Total Usable space (excluding parking spaces) sqm 371,715 877,806 376,289 1,625,809 Number of parking spaces No. 4,294 9,032 6,683 20,009 book value € m 736.1 2,165.9 710.3 3,612.2 Rental income (actual) € m 39.0 79.8 45.5 164.4 Rental income (annualised) € m 36.1 78.9 50.2 165.2 Economic vacancy rate % 18.2 1.8 18.8 11.8 Gross yield % 5.1 5.3 7.4 5.8

Net yield % 4.7 4.1 5.4 4.6

MANAGEMENT REPORT PORTFOLIO STRATEGY

CA Immo has positioned itself as an investor in com- perties to 14 % of total assets; over the medium term this mercial real estate, focusing on the central European re- category, together with other usage types such as hotels gion through the twin business areas of investment prop- and residential properties, should not account for more

erties and project development. The Group’s portfolio than 30 %. strategy is tailored to specific market conditions and the general economic circumstances. Regardless of region or Solid stock, strong development expertise asset class, however, the central objectives are to secure With a view to largely negating the volatility of project the earning power of investment properties whilst realis- development, CA Immo is aiming to establish a business

ing development projects with the maximum efficiency. ratio of 80 % investment properties (to secure a stable

cash flow) to 20 % development (based on total invest- Focused, high quality portfolio ment costs) to generate higher yield. It is a combination CA Immo focuses its activities on the core markets of with advantages to both business areas: the business of Austria, Germany, Poland, the Czech Republic, Hungary, investment properties benefits from access to high quality Slovakia and Romania. In all of these countries except new real estate, whilst the property management builds Slovakia, the company has its own teams to oversee pro- up on a steady basis. To release additional capital resour-

gress on project development and manage investment ces to implement projects in the pipeline, up to 10 % of properties locally. The acquisition early in 2011 of Euro- established income-generating properties or completed polis AG, a subsidiary of the Austrian Volksbank special- developments are sold each year (according to market ising in real estate, has raised the profile of the company conditions and the receptiveness of the investment mar- in its core region of Eastern Europe. Over the medium ket). and long term, the objective will be to improve the regional focus of the portfolio, retaining high quality properties and accumulating assets organically on the Group's defined core markets. In particular, given the high priority accorded to sustainability by the CA Immo Group, the company will seek to enhance the average quality of its portfolio – above all, by absorbing completed projects into the stock of assets.

Beyond maintaining current stock and proceeding with current development projects, there are no immediate plans to expand in the secondary markets, and exit strategies will be deployed if necessary. Although current development projects in the CIS region (and especially Ru- ssia) will continue, no new projects will be initiated in the short to medium term.

Key asset class: office properties CA Immo has always positioned itself as an office specialist. In this segment, the company can draw on considerable expertise acquired over years of experience. In both of the company's business areas, the clear operational focus is on high quality office properties, with a strong emphasis on prime locations. As regards stock, much of the organic asset accumulation envisaged for the years ahead will take place in the office segment; offices should make up at least 70 % of the overall portfolio in the medium term. One effect of the Europolis AG acquisi- The CA Immo Group markets tion has been to increase the proportion of logistical pro-

MANAGEMENT REPORT SEGMENT REPORT FOR AUSTRIA

THE INVESTMENT PROPERTY AREA Extensive technical and architectural modernisation work has been under way at the Galleria shopping centre The asset portfolio in Austria comprises rentable effec- on Vienna’s Landstrasser Hauptstrasse since mid-2009; tive area of some 363,789 sqm with a market value of the investment volume was approximately € 15 m. In around € 703.7 m according to current valuations. This parallel with the structural transformation, the mix of sec- portfolio (taking account of properties sold in 2010) gen- tors has been expanded. The centre, which offers rentable erated rental income of € 38.9 last year (€ 46.0 m in 2009), retail space of around 15,500 sqm on three levels, re-op- which is equivalent to an average yield of 5.1 %. Lettings ened on schedule in October 2010. It also provides some performance in 2010 was stimulated mainly by the large- 13,500 sqm of office space and a car park with 388 spaces. scale letting to Post AG at the Lände 3 site in Vienna. In The shopping centre is around 97 % let; it has 43 shops total, floor space of approximately 38,700 sqm was newly that include such reputable names as Müller, Spar, Swa- let last year, and contracts regulating an additional rovski and Intersport. 11,370 sqm were extended by lengthening the termination waiver. Conversely, an area of 67,600 sqm was returned as lease contracts expired (the vacation of premises by Siemens Austria at the Lände 3 site accountted for 61,500 sqm of this figure). The economic vacancy rate in the asset portfolio (measured on the basis of expected annual rental income) stood at 18.2 % in 2010 (8.2 % in 2009). On key date 31 December 2010, vacancy in square metres was equivalent to 23.7 % (8.8 % in 2009). The increase in the vacancy rate was the result of the vacation of premises by Siemens at the Erdberger Lände site in Vien- na, which had been scheduled for 2010; the vacancy level will be significantly reduced again as Post AG establishes its tenancy step by step as contractually agreed from early MANAGEMENT REPORT August 2011. VIENNA, Galleria shopping centre

Sales in 2010 CA Immo invested approximately € 15.4 m in its Aus- Strategic portfolio adjustments were carefully analysed trian portfolio in 2010, compared to € 8.2 m in 2009. Of and implemented in 2010. Market placement was particu- this, € 9.2 m accounted for the revitalization of the Galle- larly profitable for small to medium-sized apartment hou- ria Landstrasse shopping centre. An additional € 2.4 m or ses in Vienna and the regional capitals. In total, 13 indivi- so (€ 3.3 m in 2009) was devoted to maintenance costs dual properties were sold in 2010, producing an appro- with a view to upholding the fabric of buildings and the ximate trading income of € 37.5 m (€ 77.1 m in 2009). quality of rental units.

INVESTMENT PROPERTIES IN AUSTRIA: KEY FIGURES

31.12.2010 31.12.2009 Change

Book value (in € m) 703.7 702.0 0.2%

Annualised rental income (€ m) 36.1 44.4 – 18.6%

Yield 5.1% 6.3% – 1.2 pp Vacancy rate 18.2% 8.2% +10.0 pp

MANAGEMENT REPORT

DEVELOPMENT PROJECTS spin-off organisation also started renting around 6,800 sqm of office space at the site on 1 March 2010. Early in 2010, a large-scale development and restoration project known as Lände 3 was launched on an Erdberger These substantial new lettings have ensured a very good Lände property in Vienna's third municipal district. The start as regards the repositioning and redevelopment of present site is made up of several sections, with total the Lände 3 site. At present, legal and organisational ar- existing office space of approximately 82,000 sqm rented rangements for the division of the site are in progress, in in full to Siemens Austria until February 2010. In March tandem with intensive activities aimed at modernising 2010 the company, as planned, began relocating in stages the office space vacated in 2010. Planning of the infra- to a newly developed site of its own. By key date 31 De- structure and other outdoor areas on the site is currently cember, around 61,500 sqm of office space had been re- under discussion with the local council and the munici- turned, with the remaining 20,500 sqm or so let to Sie- pal authority of Vienna. The plans should be implemen- mens until 2014 and to a petrol station operator for the ted by the autumn of 2011. Further investment at the site longer term. is planned for the long term. The annual rental revenue for the complex as a whole amounted to € 5.2 m in 2010 Of the returned premises, one section comprising (€ 9.7 m in 2009); this year, revenue in the range of € 3 to around 18,500 sqm will be extensively redeveloped as 4 m is anticipated. part of a modernisation project starting in March 2011. Planning permission has been obtained and negotiations During 2011, MEININGER hotels will be established on are in progress concerning the letting of the building two CA Immo sites: on Fürbergstrasse in Salzburg (at- upon completion. tached to the Zentrum im Berg shopping centre) and on Vienna’s Rembrandtstrasse, adjacent to the Augarten park. The remainder of the returned office space was appro- Ground-breaking took place in October 2010 in both Vi- ved for re-letting straight away. Notable success in re-let- enna and Salzburg. The Salzburg hotel will have 101 ting has already been achieved, especially with the ac- rooms, while the Vienna establishment will have 132 quisition of Post AG as a major tenant in December 2010. rooms. CA Immo will be investing around € 16 m in the As from 1 August 2011, the Austrian company will begin two properties. CA Immo will complete the hotel in Salz- the process of amalgamating its main office divisions at burg in March 2011 and hand it over to the operator, the the existing office site at Lände 3, which comprises some MEININGER budget hotel chain. The Vienna hotel is 32,000 sqm and is let for a period of five years. A Siemens scheduled for completion in October 2011. MEININGER will lease both properties for a term of 20 years.

VIENNA, Lände 3, impression of section A

KONZERNLAGEBERICHT SEGMENT REPORT FOR GERMANY

CA Immo has been investing in Germany since the au- sed to the state of Hesse on a long-term basis, with aver- tumn of 2006. In the years since then, the company has age terms of around 26 years still to run on lease contracts. been expanding its portfolio in the country. At the turn of The overall asset portfolio (including properties intended the year 2007/2008, for example, CA Immo acquired the for trading) offers a rentable effective area of approxima- project development company Vivico Real Estate GmbH tely 751,130 sqm with a market value on the balance from the German state. Vivico was formed in 2001, having sheet date of around € 1,335 m according to current va- previously been a collecting society for railway properties. luations (compared to € 1,103 m in 2009). Rental income The acquisition provided CA Immo with real estate worth of € 63.2 m was generated in 2010 (including properties around € 1.3 bn in the heart of major German cities as sold in 2010; the figure for 2009 was € 69.2 m). The oc- well as a strong platform for developing the sites. As at cupancy rate for the properties averaged 98.2 % in 2010 the balance sheet date 31 December 2010, CA Immo held (97.8 % in 2009); as at 31 December 2010, the yield on the property assets amounting to € 2.2 bn in Germany; this is portfolio stood at 5.3 % (5.8 % in 2009). CA Immo inves- equivalent to some 60 % of the company's overall proper- ted approximately € 5.3 m in maintaining its German ty assets, confirming Germany as the most important mar- portfolio in 2010. ket for the CA Immo Group. Acquisitions Focus on city district development In June, CA Immo acquired an office block in Berlin for In 2010, the CA Immo Group focused its strategic invest- approximately € 6.7 m. The building on Lietzenburger ment activities on major West German cities such as Mu- Strasse, south of the Kurfürstendamm, has gross floor nich, Frankfurt and Berlin, making progress on (someti- space of 3,750 sqm as well as 34 parking spaces and sto- mes large-scale) mixed use urban development projects. rage areas. Generali Versicherung AG is the main tenant All CA Immo business is carried out through German sub- and retail outlets are let on the ground floor. sidiaries: most investment properties in the German portfolio are held by Vivico AG, whilst project development Sales activity is managed by Vivico Real Estate. Details of Sales of properties in Germany in the amount of CA Immo Group participations in Germany are provided € 285 m were transacted as planned in 2010; many of MANAGEMENT REPORT in the 'Investments and funds' section. these were included in the balance sheet item ‘Investment properties under development'. The disposals yielded a result of € 32.4 m, which boosted capital reserves and the THE INVESTMENT PROPERTY AREA earnings status of the portfolio. Transactions included large land reserves in Berlin, Frankfurt and Basel (after Alongside landmark buildings such as the Königliche suitably value-enhancing property use approvals had Direktion in Berlin, the company's investment property been obtained). Sales were carried out to support the assets in Germany include a package of properties in long-term development of extensive sites owned by Hesse with a value of € 788 m. These properties are lea- CA Immo, mostly in inner city areas.

INVESTMENT PROPERTIES GERMANY: OPERATING FIGURES

31.12.2010 31.12.2009 Change

Book value (in € m) 1,334.9 1,103.1 21.0% Annualised rental income (€ m) 70.8 63.9 10.7%

Yield 5.3% 5.8% – 0.5 pp

Vacancy rate 1.8% 2.2% – 0.4 pp

MANAGEMENT REPORT

During the first quarter of 2010, CA Immo sold a plot used for apartments and 2,000 sqm will be devoted to of- spanning around 1,600 sqm in the Frankfurt Europavier- fices and high quality commercial space. In November, tel. The buyer, STRABAG Real Estate GmbH, intends to CA Immo sold two sites in the Munich district of Aubing build a three-star hotel on the construction site on Eu- – spanning some 27,000 sqm in total – to a project devel- ropa-Allee. In the autumn, another plot of approximately opment company belonging to Immobilienzentrum AG. 30,000 sqm was sold to Bouwfonds Immobilienentwick- The buyer plans to build around 46 detached houses. lung, a Frankfurt-based residential construction specialist that plans to build around 730 apartments on the site. Several investors agreed to support the development of The sale of the Nord 1 office building at Europa-Allee 12- the Basel district of Erlenmatt in 2010. Several construc- 22, which had been agreed prior to construction, was also tion sites spanning a total area of around 68,000 sqm were concluded at the end of 2010. The property, which will sold in 2010. Various types of usage (but mainly residen- serve as the German headquarters for (amongst other or- tial) are planned for the area. Land use plans have been ganisations) the international bank BNP Paribas, was sold drawn up for all sites. to an open-end property fund of Union Investment Real Estate under the terms of a forward purchase agreement The former railway authority building in the Altona and handed over to the buyer upon completion. district of Hamburg was sold in October. The historic complex, which dates from 1894, was fully renovated in A construction site spanning some 30,000 sqm was sold 2002. It now offers around 31,900 sqm of modern office in the southeastern part of the Gleisdreieck area of Berlin. space let to Deutsche Bahn AG. The buyer was the building cooperative Initiative Möck- ernkiez, which plans to construct a sustainable residen- Lettings tial district with a total of 385 flats over the next few The contract with Bombardier Transportation, principal years. At the end of 2010, CA Immo sold a site of around tenant at the Königliche Direktion building in Berlin, was 3,100 sqm in the new Europacity district in Berlin (adja- extended by six years in the first quarter and expanded cent to the main railway station in Berlin). A combination from 15,000 sqm to cover approximately 16,530 sqm. The of hotel accommodation, offices and restaurants will be world leader in the rail transport industry established its built on the site. Another Europacity plot of around head offices at the Königliche Direktion in 2005. 2,800 sqm, next to the Hamburger Bahnhof, was sold late in the year. The company plans to construct an office A new rental agreement for Tower 185, a high-rise buil- building. ding under construction in Frankfurt, was concluded in May. PricewaterhouseCoopers (PwC) will lease an addi- A site spanning approximately 1,300 sqm was sold to tional 5,500 sqm over four floors. As a result, the auditing CONCEPT BAU-PREMIER in the Schlossviertel Nym- firm will occupy some 66,000 sqm of floor space in the phenburg district of Munich. The rights have been secu- Tower 185 office building, bringing the pre-letting quota

red for a mixed use development on the site with appro- to around 68 %. ximate gross floor space of 4,200 sqm: 2,200 sqm will be

FRANKFURT, Europa-Allee 12-22

MANAGEMENT REPORT

THE PROJECT DEVELOPMENT AREA budget hotel with the MEININGER Group. The hotel is conveniently located on Europa-Allee and also benefits As at 31 December 2010, the CA Immo Group had ren- from its proximity to the Frankfurt Exhibition Centre. table effective area of approximately 147,000 sqm under construction in Germany, along with a total budgeted pro- The Tower 185 office building, which incorporates sus- ject volume of around € 708 m. Approximately 27 % of tainability features, reached its final height of 200 metres the investment costs have been invested; all outstanding in February 2011, making it the fourth highest building in construction costs (roughly € 515 m) have been covered Frankfurt. Staff of the principal tenant PwC moved into by loan commitments and capital resources. Further pro- the lower levels of the building at the end of 2010. Follo- jects with a volume of some € 579 m are in planning sta- wing completion at the end of 2011, Tower 185 will be- tus. Since part of these projects will be developed with come one of the first high-rise structures in Europe to re- joint venture partners, the CA Immo share of the project ceive gold LEED certification from the U.S. Green Buil- volume will be in the range of € 200-250 m. This exten- ding Council; it was granted precertification from the Ger- sive project pipeline in combination with additional land man Sustainable Building Council before construction reserves and projects in status of procuring building ap- work had started. proval with an approximate value of € 460 m confirm Germany as the main driver behind the organic asset A planning application for the Skyline Plaza shopping accumulation envisaged for the years ahead and the centre in the Frankfurt Europaviertel was submitted in CA Immo Group as the biggest project developer in the December. The project, which is being realised as a joint country. For its reserves of real estate in Germany, the venture with ECE, was awarded gold pre-certification by Group will seek to secure building rights in relation to the German Sustainable Building Council (DGNB) in re- gross floor space of around 1.5 m sqm by 2014; 30-40 % of cognition of its sustainable planning before construction this is likely to be approved for residential purposes on work had even begun. The shopping plaza opposite the current estimations. As soon as the sites are ready for Tower 185 office building will provide approximately building, they will either be sold to property developers, 38,000 sqm of retail space for around 170 shops, a health developed by CA Immo for investors or absorbed into the and fitness zone spanning some 8,500 sqm and a restau- MANAGEMENT REPORT company’s asset portfolio following completion. Key rant area of around 4,500 sqm. Recycling systems and development activities in Germany currently include: only low-pollution and environmentally compatible materials will be in use during the planning and building Europaviertel, Frankfurt phases. Negotiations with potential operators are in pro- The Europaviertel – a new city district spanning some gress regarding planned conference facilities at the Sky- 90 hectares, of which 18 hectares are being developed by line Plaza. CA Immo – is one of the Group's biggest development projects. This modern area of residential units, offices, restaurants, retail outlets and a conference centre is directly adjacent to the Frankfurt Exhibition Centre and the banking district. Reputable companies such as BNP Pari- bas, PricewaterhouseCoopers (PwC), Realgrund and the hotel chain MEININGER have already signed up as tenants, users or investors for the Europaviertel.

The CITY COLOURS complex was developed and completed in the Frankfurt Europaviertel in a joint venture between CA Immo and Realgrund AG during the year under review. The structure has 112 rented flats and 51 owner-occupied flats; all of the rented units have been sold to the VBL, the German pension institution of the Fe- deral Republic and states. 100 % of the owner-occupied flats have been sold. The MEININGER hotel opened in

April following a construction period of just 15 months. FRANKFURT, Tower 185 CA Immo has concluded a 20-year lease agreement for the

MANAGEMENT REPORT

Munich mark the entrance to Europacity; tenants will take up In the capital of Bavaria, CA Immo owns extensive de- residence in the second half of 2012. DGNB certification velopment space in locations very well linked to the will be sought for the TOUR TOTAL building. city's infrastructure. Arnulfpark® is the first CA Immo city quarter in Germany to be nearing completion. On a To boost the development of the whole site, Vivico site of around 18 hectares close to the city's main rail sta- launched a 'sustainability workshop' in 2010. For a pe- tion, around 1,000 apartments will be built along with riod of six months, around 25 experts from the fields of hotels, a range of restaurants, convenience stores and cul- politics, business and research came together to compile a tural facilities; some 4,500 working positions will be cre- catalogue of proposals on waste, construction materials, ated. The topping out ceremony for the SKYGARDEN energy, open space, social aspects, transport and water. office building in Arnulfpark was held in the spring of The state government and local council together with the 2010. The project, a joint development of CA Immo and landowner Deutsche Bahn and Vivico presented the re- OFB, offers around 33,000 sqm of gross floor space above sults to interested members of the public and represen- ground. PricewaterhouseCoopers signed a contract for tatives of the media at an on-site conference. some 17,500 sqm of rentable space before construction work had begun. Around 900 employees of company's Düsseldorf Munich branch will take up residence in the SKYGAR- Reconstruction work to make the site ready for develop- DEN in 2011. ment has been in progress in the BelsenPark district of Düsseldorf since January 2011; marketing began last year. Construction of the AMBIGON office, commercial and The land use plan was approved in summer 2010, thereby medical centre has commenced in the Schlossviertel securing building rights for the Düsseldorf project. Bel- Nymphenburg, a district of quality residential and office senPark was designed as a mixed use urban district: over units. With a gross floor area of approximately the next few years, around 450 flats and a pedestrianised 16,400 sqm, the complex combines a range of usage types zone of shops and offices will be built around a park of under one roof: offices, retail outlets, a medical centre roughly two hectares. and a rehabilitation/fitness zone. CA Immo had conclu-

ded contracts on approximately 47 % of the rental space Mainz before building work began; companies agreeing to lease In Mainz, a long-term 50:50 joint venture between premises include Munich-based asecuram Therapieleis- CA Immo subsidiary Vivico and Stadtwerke Mainz was tungen GmbH, a REWE supermarket and Aldi. agreed early in 2010. The project development company Zollhafen Mainz GmbH & Co. KG subsequently began In partnership with the state capital Munich, CA Immo work to exploit and market the new city district. Over the organised a competition for town planners and landscape next 10 to 15 years, a mixed use urban district will be architects. Ideas were invited for a new district in the Mu- created across 30 hectares or so of the present Zollhafen nich suburb of Laim am Berg on the theme of ‘urban na- area. Including the land, CA Immo will be investing some ture’. The city of Munich will proceed with development € 53 m in the project. of the 135,000 sqm area on the basis of the competition results. Cologne In the Kunibertsviertel district of Cologne, the Rhein- Berlin Triadem car park has been expanded from 200 to 600 Several projects are in the pipeline that will be highly spaces. It now has seven floors which accommodate significant for the German capital. These include Europa- mostly public parking. city, the district north of the city's main station. At 40 hectares in total, the site is around twice as big as Pots- damer Platz; CA Immo is developing approximately half of the site. The first part of the development will be a 17- storey office block on Europaplatz that has been designed as a green building. It will serve as the German base for oil company TOTAL, which plans to lease the entire tower (floor spare of around 14,000 sqm). The structure, which will have an approximate height of 69 m, will

MANAGEMENT REPORT SEGMENT REPORT FOR EASTERN AND SOUTH EASTERN EUROPE

The CA Immo Group has been investing in Eastern Eu- Lettings performance in 2010 totalled 78.136 sqm of rope since 1999. Today, the Group maintains a presence rentable effective area, of which 37.883 sqm was re-let or in nine countries of Central and Eastern Europe (CEE), newly let; contract extensions were responsible for South Eastern Europe (SEE) and Russia in the form of in- 33.746 sqm and expansions of premises by existing ten- vestment properties respectively development projects. ants accounted for 6.507 sqm. As at 31 December 2010, The subsidiary CA Immo International AG, which had the asset portfolio had an occupancy rate (according to handled Eastern European activities since 2006, merged surface area) of 80 % (81 % in 2009); the economic occu- with the parent company in November 2010 with retro- pancy rate (measured on the basis of expected annual spective effect to 31 December 2009. Since 2006, the rental income) stood at 81 % in 2010 (and 82 % in 2009). project development area has essentially been managed The overall portfolio produced a yield of 7.4 % (7.4 % in by the CA Immo New Europe (CAINE) special fund, in 2009), with the yield for properties in the SEE region which CA Immo holds a 60 % stake; projects initiated standing at 7.6 % (2009: 8.2 %) and 7.3 % (2009: 7.0 %) prior to this date, and those which do not meet the fund for those in the CEE region. Full details of the valuation prerequisites, are implemented by CA Immo itself. results are provided in the ‘Property valuation’ section.

The acquisition of real estate company Europolis AG on Central and Eastern Europe (CEE) 1 January 2011 has significantly raised the profile of With two thirds of its Eastern European assets in CEE, CA Immo on the markets of Eastern Europe. The region CA Immo has traditionally maintained a strong represent- 1 now accounts for around 44 % of the company's total tation in the region. The asset portfolio on the core mar- portfolio (up from 20 %). The acquisition will be reflected ket of Poland includes two high quality office properties on the balance sheet on 31 March 2011; for this reason, in Warsaw: the Warsaw Financial Center (WFC, which is the key indicators below relate only to the CA Immo port- 50 % owned by CA Immo) and the Wspólna building in folio and exclude Europolis. the capital’s central business district. Both properties are earning an excellent level of rent by current market standards. When two large rental agreements expired in the THE INVESTMENT PROPERTY AREA WFC, the company rapidly secured a new tenant at a MANAGEMENT REPORT good price level. Vacancy in the Warsaw Financial Center

The asset portfolio of CA Immo essentially comprises stood at 8 % on the key date; rental agreements already high quality, centrally located office properties in capital concluded by this date will bring the occupancy level of cities of Eastern and South Eastern Europe. As at the ba- the building back to 93 % at the beginning of the second lance sheet date 31 December 2010, investment properties quarter 2011. The occupancy level of the Wspólna office represented an approximate market value of € 678 m building stands at 97 %. The two properties have a total (€ 605 m on 31.12.2009). The company has investment rentable effective area of 32,015 sqm and an approximate properties in Poland, the Czech Republic, Slovakia, Hun- market value of € 115.5 m on current valuations gary, Romania, Bulgaria, Slovenia and Serbia, 62 % of (€ 101.5 m in 2009). which are in the CEE states and 38 % of which are in the SEE region. In the Czech Republic, meanwhile, the company owns the Europort business hotel at Prague Airport and the The company's Eastern European asset portfolio com- Diplomat Center in Pilsen (both Marriott Courtyard hotels) prises 337.377 sqm of rentable effective area which gene- as well as a building in Prague housing the English Inter- rated rental income of € 45.5 m in 2010 (compared to national School. Taken together, the three properties offer € 40.3 m in 2009). CA Immo has established regional ma- rentable effective area of 38,696 sqm and are operating at nagement companies in Poland, Hungary, Romania and economic capacity (the economic vacancy rate for 2010

Serbia. Local presence enables properties to be managed was 2 % compared to 1.6 % in 2009). According to cur- as efficiently as possible whilst guaranteeing direct con- rent valuations, the properties had an approximate mar- tact with tenants and the market. Depending on regional ket value of € 57.9 m (€ 76.1 m in 2009). The low valua- requirements, the local teams are charged with tasks tion relative to the previous year reflects the tough eco- connected to asset management, letting, administration, nomic situation for both the hotel sector in Prague gener- accounting and project management. ally and, more particularly, our leasing partner.

1 Estimated value as at 1 January 2011

MANAGEMENT REPORT

CA Immo has one property in Slovakia: the Bratislava ket in Eastern Europe. According to current valuations, Business Center, acquired in 1999. The building was re- the Hungarian properties have an approximate market novated in 2010 and the vacant floor space was adapted value of € 192.1 m in total (€ 190.5 m in 2009) and eco-

for rent in smaller units. The largest rental agreement nomic vacancy rate of 23 % (31 % in 2009). concluded in 2010 provided for the leasing of 2,100 sqm of floor space to one of Switzerland's biggest insurance Situated in the centre of Budapest, the Capital Square

companies. The building was 86 % let as at 31 December office building was erected by Hochtief Development 2010. The Bratislava Business Center 1 (BBC 1) has Hungary. Acquired under the terms of a forward purchase 9,486 sqm of rentable effective area and a market value of agreement, the building was transferred to the asset port- € 9.5 m (€ 9.5 m in 2009). To consolidate the importance folio of CA Immo in mid-2009. Capital Square, which of this site, an extension to the existing complex – known offers an approximate rentable effective area of as BBC 1 Plus – is being developed on an adjacent land 31,767 sqm, is one of the best office buildings in Buda- reserve held by CA Immo (see 'The project development pest on account of its high quality architecture, low en- area'). ergy consumption and excellent infrastructural links. The

building was around 72 % let as at 31 December 2010, CA Immo has a total of seven investment properties in mainly to international tenants such as Ferrero, Spedition Hungary, making it the company's biggest regional mar- Maersk and Bridgestone.

LIKE-FOR-LIKE ANALYSIS OF PROPERTIES THAT WERE ALREADY CORE AS OF 31 DECEMBER 2009

book values Annualised rental Gross yield Level of commercial income rental € m 2010 2009 2010 2009 2010 2009 2010 2009

Poland 115.5 101.5 7.9 6.7 6.8% 6.6% 93% 85% Slovakia 9.5 9.5 0.9 0.8 9.4% 8.6% 86% 76% Hungary 192.1 190.5 12.9 11.8 6.7% 6.2% 77% 69% Czech Republic 57.9 76.1 6.8 7.1 11.8% 9.3% 98% 98% CEE 375.0 377.6 28.4 26.4 7.6% 7.0% 86% 79%

Romania 90.3 89.9 8.9 8.9 9.8% 9.9% 97% 99% Bulgaria 19.7 22.1 2.4 2.4 12.1% 10.7% 100% 100% Serbia 92.6 91.3 5.7 5.2 6.1% 5.7% 71% 65% Slovenia 19.9 24.1 1.5 2.2 7.7% 9.2% 90% 100% SEE 222.5 227.4 18.5 18.7 8.3% 8.2% 87% 87%

Portfolio - Like for Like1) 597.5 605.0 46.9 45.1 7.8% 7.4% 86% 82%

Completions Bulgaria 26.0 0.3 1.3% 13% Completions Poland 45.5 2.3 5.0% 56% Completions Romania 8.5 0.7 8.2% 100% New projects completed 80.1 3.3 4.2% 45%

Total 677.6 50.2 7.4% 81%

1) Like for like: comparison of properties which were already part of the stabilized portfolio at 31 December 2009

MANAGEMENT REPORT

The Duna Center, a specialist retail centre, was con- 40,712 sqm, an approximate market value on current structed under the terms of a 50:50 joint venture between valuations of € 90.3 m (compared to € 89.9 m in 2009) the CA Immo New Europe property fund (CAINE) and a and an economic occupancy rate of 97 %. group of private investors. In October 2009 it was transferred to the CAINE portfolio. The 42,500 sqm site in- The asset portfolio in Bulgaria comprises three office cludes 16,375 sqm of space rentable to national and inter- properties in Sofia: the Europark Office Building, the national retailers. The utilisation rate has improved only International Business Center (IBC) and the Megapark slightly, from 51 % in 2009 to 63 % in 2010, reflecting the office complex, in which CA Immo acquired a 35 % stake tough circumstances on the Hungarian retail market. De- in the third quarter of 2010. Taken together, the Europark spite this, three new tenants were secured in the second Office Building and the IBC, which are 100 % let, provide half of 2010: Deichmann, a branch of an Hungarian elec- a rentable effective area of 11,197 sqm. The largest tenant tronics chain and a cut-price clothing company. in the Europark Office Building, an automotive supplier, has agreed a significant contract extension to 2016. South Eastern Europe (SEE)

CA Immo invests in Romania, Bulgaria, Slovenia and As mentioned above, CA Immo recently acquired a 35 % Serbia, with Romania established as the company's main stake in the Megapark office building via the holding target market in the SEE region. In Bucharest, CA Immo company. The building is conveniently located between manages three high quality office properties in good loca- the airport and the centre of Sofia. Alongside CA Immo tions: the Bucharest Business Park and the Opera Center 1 with its 35 % holding, the joint venture partners in the and 2. The company's properties are generally let to in- property are Soravia, CEE Realty Beteiligungs GmbH and ternational companies with good credit ratings. In 2010, Bank Austria Real Invest. At the current time, 13 % of the floor space totalling 21,031 sqm was successfully let 44,000 sqm of office space and 2,700 sqm of retail space within these three buildings. The average term on all (approximate figures) is let. Negotiations are in progress rental contracts in the Bucharest Business Park increased with other potential international tenants. According to to over four years in 2010. The vacancy level created in the most recent valuation, the total market value of IBC the Opera Center 1 as the result of a major tenant moving and Europark is approximately € 19.7 m (€ 22.1 m in MANAGEMENT REPORT out in the summer of 2010 had been reduced by the end 2009). The investment share for the Megapark property of the year thanks to a series of new lettings. The three company stands at € 26.2 m. properties have a total rentable effective area of

DISTRIBUTION OF BOOK VALUE BY REGION DISTRIBUTION OF BOOK VALUE BY MAIN USAGE SEGMENT EASTERN EUROPE SEGMENT EASTERN EUROPE

Poland 24%

Romania 16% Office 83% Bulgaria 6%

Serbia 13% Retail 5%

Slovenia 3% Hotel 10% Slovakia 2%

Czech Rep. 8% Other 2% Hungary 28%

MANAGEMENT REPORT

BUDAPEST, Capital Square

In Slovenia, the company owns a hotel in Ljubljana DEVELOPMENT PROJECTS with an effective area of 17,931 sqm and an approximate market value of € 19.9 m (€ 24.1 m in 2009). The varying speeds of economic recovery in the nations of Eastern Europe during 2010 continued to affect the In Serbia, the Sava Business Center office building was business of project development across the region. Sharp- integrated into the portfolio of the CA Immo New Europe ly declining demand for office space on most markets and property fund upon completion in July 2009. The eight- postponed decisions on the part of potential tenants storey office building, located in the New Belgrade office forced construction schedules to be revised and some district, offers a rentable effective area of some development projects to be re-evaluated.

18,500 sqm and 400 parking spaces. It was 62 % let as at the key date to organisations that include the banking Despite this scenario, CA Immo made significant opera- group Crédit Agricole, Piraeus Bank, Ericsson and Boe- tional progress last year in certain areas as regards plan- hringer Ingelheim. Despite generally critical market as- ning permission, construction and project completion. sessments at the start of the year, existing contractual Phase one of the Poleczki Business Park in Warsaw was rents were sustained at above average levels and additio- finalised at the end of June, and the first phase of the Re- nal floor space was newly let. The Group has two high tail Park Sibiu in Romania was subsequently completed quality office properties in the Serbian capital, including in August. Both structures have been incorporated into Belgrade Office Park, which is part of the CA Immo port- the asset portfolio of the CA Immo New Europe project

folio and which reported an occupancy rate of 71 % as at development fund. A key step has also been taken as re- 31 December 2010. In total, these buildings have gards the financing of the Airport City St. Petersburg 39,772 sqm of rentable effective area and a market value project. of € 92.6 m according to current valuations (€ 91.3 m in 2009). All projects being developed by the CA Immo Group (either directly or through the project development fund) are fully financed, which means they can be realised on a

MANAGEMENT REPORT

sound financial footing. The following CA Immo Group tion two is scheduled for early 2012. A modern office dis- development projects are currently being implemented trict with a total effective area of 200,000 sqm is schedu- via the CA Immo New Europe (CAINE) property fund: led for completion by 2015. Investment in the first building section amounted to € 110 m; overall, the construc- Poland tion project is estimated to cost around € 250 m. Poleczki Business Park: This mixed-use complex made up of offices, commercial space and storage facilities is Romania being built on a site spanning 146,000 sqm close to the Arad specialist retail centre: In cooperation with an airport and the centre of Warsaw. The project, which is Austrian joint venture partner, the erection of a specialist being implemented as a 50:50 joint venture between the retail centre is planned for Arad. When complete, the CA Immo New Europe project development fund and centre will provide an effective area of roughly UBM Realitätenentwicklung AG, is currently the largest 16,700 sqm. Although financing for the project has been property development initiative in Poland. Following a secured, the actual commencement of building work has construction period of nearly two years, construction been postponed for the time being owing to the difficult phase one – comprising two separate buildings with a situation in the Romanian retail sector: implementation rentable effective area of 43,000 sqm (37,000 sqm of office will only be economically viable when a sufficient level space plus 5,600 sqm of retail and service premises) – of pre-letting has been attained. was completed at the end of June 2010 and transferred to the asset portfolio of the CA Immo New Europe property Retail Park Sibiu: In a joint venture with a partner, fund. The first tenants took up residence in the third CA Immo's project development fund completed phase quarter of 2010; they included most of the staff members one of the Retail Park Sibiu in August 2010 and trans- of the principal tenant ARMA, an agency of the Polish ferred it to the portfolio. The structure, which spans Ministry of Agriculture. As at the balance sheet date 31 around 9,700 sqm, was completed in a construction pe-

December 2010, phase one was around 59 % let; substan- riod of around nine months. It has been let in its entirety tive negotiations with potential tenants concerning re- to the DIY chain OBI, which opened a new branch in the mainning floor space are in progress. building at the end of August. The next expansion phases MANAGEMENT REPORT are currently under preparation, and discussions with va- Construction phase two, comprising a pair of buildings rious retailers are taking place. The total investment cost with a total rentable effective area of 20,835 sqm, was is estimated at € 100 m. launched in December 2010. Completion of building sec-

WARSAW, Poleczki Business Park

MANAGEMENT REPORT

Russia been agreed; negotiations with other potential tenants are Airport City St. Petersburg: In St. Petersburg, a four-star under way. Crowne Plaza hotel and three modern office buildings with total floor space of 39,000 sqm (comprising con- Other CA Immo projects at an early stage of develop- struction phase one) are currently being built in a joint ment include: venture with Warimpex and UBM adjacent to the city's

Pulkovo Airport. CA Immo holds a 25 % stake in the ven- Czech Republic ture through the CA Immo New Europe project develop- CITY Deco: The CITY Deco project is a real estate de- ment fund. An ongoing source of finance for the project velopment in Prague realised through a joint venture with was secured in mid-October 2010 with the signing of a ECM Projektentwicklung. The mixed-use property, which credit agreement worth € 60 m by a Polish banking syn- has gross floor space of around 18,000 sqm, features of- dicate. The hotel is scheduled for completion by the end fices, a fitness centre and a car park. At the end of 2010, of 2011, with 21,000 sqm of the office space due to open CA Immo announced its intention to withdraw from the at the same time; the remaining 18,000 sqm of office project on the grounds that the completion and handover space is expected to be completed by 2012. Additional of the property did not comply with the terms of the con- land reserves spanning some 20,000 sqm are available for tract; the mezzanine loan was accelerated. a subsequent construction phase, although no decision on phase two has yet been taken. Estonia Tallinn: An office building with a small amount of retail Projects initiated before the establishment of the space and a gross floor area of around 22,000 sqm is plan- CA Immo New Europe fund, and those which do not sa- ned for the Estonian capital. A joint venture has been set

tisfy the criteria of the fund, are implemented directly by up to realise the project, in which CA Immo has a 40 % CA Immo. These projects include: stake. Financing with outside capital was secured in 2008 to acquire the real estate. Given that CA Immo intends to Russia focus on project development on its core markets in fu- Maslov Tower: In the second quarter of 2010, the project ture, terms for withdrawal from the project are currently company implementing the Maslov project in Moscow under discussion. filed for bankruptcy. The Group companies involved in the project were consequently deconsolidated on 30 June 2010. Furthermore, the CA Immo Group is striving for an economic resolution for this project.

Slovakia BBC 1 Plus: Construction of the Bratislava Business Center 1 Plus (BBC 1 Plus) office complex began at the start of December 2010. The 13-storey building, which en- joys excellent infrastructural links in the business district of Bratislava, will provide a rentable effective area of approximately 15,900 sqm and a car park with 313 spaces. The structure was designed as an extension to the present Bratislava Business Center 1; a direct link to the original building will be established. Financing for the project has been secured through an Austrian bank, with Bilfinger Berger acting as general contractor. BBC 1 Plus is being constructed as a sustainable building with the environmental standards that implies. An application will be made for LEED certification on the property. As regards the letting situation, it is mainly tenants from BBC 1 that have expressed an interest in expanding or relocating. BRATISLAVA, BBC 1 Plus visualization Initial pre-letting for 1,000 sqm of floor space has already

MANAGEMENT REPORT PROPERTY VALUATION

Property valuation constitutes the fundamental basis on tions of expert appraisers on value-determining factors which a real estate company is appraised, and is thus the such as real estate yields and likely rental income. most important factor in determining the value of such a company's shares. The crisis afflicting the global financial Austria system has caused real estate prices and values to fluc- Properties sold during the year made up a significant tuate substantially over the past three years, and the situ- proportion (around 30 %) of upwardly valued investment ation has also affected the CA Immo Group directly. By properties in Austria. The remainder of the revaluation mid-2010 at the latest, however, widespread signs of sta- result was accounted for by numerous properties. bilisation had emerged on all of our markets, and for 2010 as a whole, the first positive revaluation result since the The reported decline in the gross initial yield to 5.1 % start of the financial crisis was recorded (€ 46,716.1 K was essentially linked to the significant fall in annualised compared to € – 129,086.5 K in 2009). rent compared to the previous year owing to the scheduled withdrawal of the principal tenant from the Erdber- As explained in detail below, the valuation result was ger Lände property (Lände 3), the biggest property in the essentially down to specific events such as the comple- Austrian portfolio in value terms with an approximate tion of development projects and the sale of real estate. book value of € 104.6 m. Disregarding this property, the

By contrast, the major devaluations of previous years gross initial yield would have been 5.6 %, compared to were largely based on sweeping revisions to the assump- 5.8 % at the end of 2009.

VALUATION RESULT AUSTRIA 1)

Acquisition costs Book value Revaluation/Impairment Gross initial yield (€ m) (in € m) MANAGEMENT REPORT 31.12.2010 31.12.2010 in € m 31.12.2009 31.12.2010

Investment properties 773 704 19.6 6.3% 5.1% investment properties under development 41 22 – 1.8 Assets held for sale 1 0 0.6 Total 814 726 18.4

1) excluding own use properties

Germany and the section that is still under contstruction, the initial The valuation result for investment properties in Ger- yield on this property as at the key date 31 December many can be explained by two opposing influences. The 2010 of 3.8% was well below the figure for the rest of the real estate portfolio leased to the state of Hesse on a long portfolio. The total property value of € 200.2 m indicates term basis (the 'Hesse package') has increased in value; significant dilution of the total initial yield. this was counterbalanced in particular by a devaluation of around € 11.2 m on the Spreebogen property in Sales agreed prior to the balance sheet date but not fi- Berlin.The main factor behind the drop in the initial yield nalised by that date (whereby the sales price indicated in to 5.3 % was the incorporation into the standing portfolio the contract was used for valuation purposes) made a ma- of the first section of Tower 185, which was completed in jor contribution to the value increases reported for pro- 2010. While this section is almost fully let, due to the perties held for sale as well as properties under develop- allocation of the book values between the finished section ment.

MANAGEMENT REPORT

Transactions of this kind accounted for more than half driving upward valuations on properties under develop- of upward valuations on properties under development, ment was the value increase attained by Tower 185 with especially in Düsseldorf and Basel. Another key factor the completion of section one.

VALUATION RESULT GERMANY 1)

Acquisition costs Book value Revaluation/Impairment Gross initial yield (€ m) (in € m) 31.12.2010 31.12.2010 in € m 31.12.2009 31.12.2010

Investment properties 1,375.0 1,334.9 – 2.3 5.8% 5.3% investment properties under development 723.1 741.3 38.0 Assets held for sale 38.5 41.2 4.9 Property intended for trading 52.7 45.3 – 1.2 Total 2,189.2 2,162.7 39.4

1) excl. own used properties

Eastern and South Eastern Europe tors in particular: on the one hand, the values of portfolio Over the past few years, Eastern and South Eastern hotels in the Czech Republic and Slovenia were again re- Europe has been affected much more severely by the vised sharply downwards, producing total devaluations turmoil of the financial crisis than other regions in our of € 22.6 m; on the other, the value of a new participation portfolio. In 2010, however, the valuation factors clearly for 2010 – the Megapark office property in Sofia, which gained a foothold as some markets started to make up part will be consolidated proportionately – was adjusted in of the ground lost in the past two years. In this regard, the the amount of € 8.4 m. trend in Poland was especially positive last year, with our properties in the country upwardly valued to the tune of As the table below shows, the gross initial yield for € 17.7 m in total; the Warsaw Financial Center played a properties already in the portfolio as at 31 December 2009

particularly important role. increased from 7.4 % to 7.8 %. The rise was mainly due to

an increase of approximately 4.0 % in annualised rents as Despite the stabilisation, however, another negative re- a result of the lower vacancy rate; devaluations were valuation result was recorded. This was due to two fac- responsible for the rise only to a lesser degree.

MANAGEMENT REPORT

VALUATION RESULT EASTERN AND SOUTH EASTERN EUROPE

Acquisition costs book value Revaluation/Impairment (€ m) (in € m) 31.12.2010 31.12.2010 in € m

Investment properties 774.7 677.6 – 12.0 investment properties under development 44.8 27.7 – 0.4 Assets held for sale 10.8 5.0 0.0 Total 830.3 710.3 – 12.4

VALUATION RESULT EASTERN AND SOUTH EASTERN EUROPE IN DETAIL

Region Acquisition costs Fair Value Change from Gross initial yield (€ m) (in € m) revaluation/impairment 2010 31.12.2010 31.12.2010 31.12.2009 31.12.2010 in € m in € m in € m in % in % in %

Poland 92.9 115.5 13.1 12.8% 6.6% 6.8% Slovakia 20.0 9.5 0.3 3.3% 8.6% 9.4% Hungary 217.1 192.1 1.3 0.7% 6.2% 6.7% MANAGEMENT REPORT Czech Republic 87.4 57.9 – 18.2 – 23.9% 9.3% 11.8% CEE 417.4 375.0 – 3.5 – 0.9% 7.0% 7.6%

Romania 91.5 90.3 0.5 0.6% 9.9% 9.8% Bulgaria 25.8 19.7 – 2.5 – 11.4% 10.7% 12.1% Serbia 113.5 92.6 2.7 3.0% 5.7% 6.1% Slovenia 46.1 19.9 – 4.2 – 17.3% 9.2% 7.7% SEE 276.9 222.5 – 3.5 – 1.6% 8.2% 8.3%

Portfolio - Like for Like1) 694.3 597.5 – 7.0 – 1.2% 7.4% 7.8%

Bulgaria 26.1 26.0 – 8.4 – 24.3% 1.3% Poland 40.8 45.5 4.6 11.4% 5.0% Romania 13.6 8.5 – 1.2 – 12.5% 8.2% Newly completed projects 80.5 80.1 – 5.0 – 5.8% 4.2%

Total 774.7 677.6 – 12.0 – 1.7% 7.4% 7.4%

1) Like for Like: Comparison of those assets that were already part of the stabilised portfolio as at 31.12.2009

MANAGEMENT REPORT

RESULTS

Revenues and net operating income RENTAL INCOME In 2010, rental income amounted to € 164,333.9 K. The BY REGION regional composition as well as the break down by usage type showed no significant changes compared to the pre- Bulgaria 1% vious year (see diagram). As the table below shows, the Austria 24% decrease in rental income by – 7.1% over the previous Slovakia 1% year was essentially linked to the loss of rental income as a result of sales. Additionally, decline in rental income in Slovenia 1% Austria was primarily caused by the withdrawal from the Serbia 3% Erdberger Lände property by the former main tenant in Poland 4% 2010. Czech Rep. 4%

RENTAL INCOME Romania 6% BY MAIN USAGE Hungary 7%

Germany 48% Office 66%

Commercial Net operating income attributable to letting activities and storage 8% after the deduction of direct management costs fell from € 151,396.2 to € 132,794.0. The main reasons for the fall, Residential 6% which was disproportionate in comparison with the development of rental income, were higher expenditure for Retail 2% bad debt losses and value adjustments, higher property- related taxes and higher brokerage fees, as a result of Hotel 8% which expenditure directly attributable to investment properties increased from € – 19,696.1 K to Other 10% € – 26,196.7 K.

MOVEMENT OF RENTAL INCOME IN DETAIL FROM 2009 TO 2010

€ m Austria Germany Eastern/South Total East Europe

2009 46.2 90.5 40.3 177.0

Change Resulting from indexation 0.8 0.5 1.22.4 Resulting from foreign currency conversion 0.0 0.0 0.0 0.0 Resulting from change in vacancy rate or reduced rentals – 5.7 – 3.2 – 1.0 – 9.9 Resulting from new acquisitions 0.0 0.1 0.0 0.1 Resulting from whole-year rental for the first time 0.0 0.0 4.6 4.6 Resulting from completed projects 0.0 1.3 0.51.7 Resulting from sale of properties – 2.2 – 9.4 0.0 – 11.5 Total change in rental income – 7.1 – 10.8 5.3 – 12.6 2010 39.0 79.8 45.5 164.3

MANAGEMENT REPORT

In connection with the sale of properties held as current the result of a reduction in internal expenditure (staff, assets and intended for trading in Germany, trading in- office rents, etc.) of around – 3.4 % to € – 32,502.9 K; come amounted to € 115,657.2 K (2009: € 78,025.5 K). furthermore other indirect administrative expenditure for The sales were counteracted by book value deductions of 2009 was also affected by one-time expenses that were € – 84,766.7 K and other development and material costs not repeated in 2010. amounting to € – 309.7 K. The item 'Capitalised services' in the amount of The trading portfolio thus contributed to the result € 11,856.5 K should be regarded as an offsetting item to € 30,016.8 K (2009: € 9,864.3 K), a figure approximately the indirect expenditures which counterbalance that equivalent to 26 % of trading income, i.e. double the level portion of internal Vivico expenses that is directly attrib- of the previous year. Around two thirds of trading turn- utable to individual development projects and thus quali- over related to undeveloped real estate; this constitutes a fies for capitalisation. major contribution towards the announced reduction in capital tied up in development sites. Gross revenue from Earnings before interest, taxes, depreciation and development services for third parties (generally rendered amortisation (EBITDA) by the subsidiary OmniCon) totalled € 2,763.8 K, com- The decrease in rental revenue in particular led to a fall pared to € 4,518.9 K in the previous year. Income from of – 1.8 % in earnings before interest, taxes, depreciation development services for third parties stood at and amortisation (EBITDA): The EBITDA decreased to € 2,138.6 K, just below the previous year's level of € 139,414.6 K in 2010 from € 141,941.2 K in 2009. The € 2,762.9 K. first quarter contribution to this result was € 28,705.5 K; the second contributed € 40,954.0 K, the third

These developments led to a 0,4 % year-on-year increase € 30,730.1 K and the fourth quarter € 39,025.0 K. The in net operating income (NOI) to € 164,949.4 K. variation between the quarters was mainly the result of an uneven distribution of the profit from the sale of proper- Profit from the sale of long-term properties ties. Revenue of € 206,745.7 K was generated from the sale of MANAGEMENT REPORT long term properties in 2010. This figure was counter- On a segment basis, Germany accounted for the largest acted by outgoing book values of € – 203,330.4 K; prop- sum, as in the previous year. Sales profits in Austria in erty sales thus delivered a direct contribution to the result 2009 lead to a reversal in the relative weighting between in 2010 of € 3,415.3 K (2009: € 9.217,7 K), with sales in the segments of Austria and South (Eastern) Europe:

Germany accounting for around 70 % of this and sales in

Austria contributing approximately 30 %. EBITDA In cases where agreement on a sale and the corresponding closing take place in different quarters, revaluation in respect of the agreed sale price is carried out on the key Austria 19% date for the respective quarter; as a result of this, a positive revaluation result of € 14,664.0 K in connection with sales was recorded. Taking these revaluations into con- Eastern/South Eastern Europe 20% sideration, the total economic result from sales of properties in fixed assets was € 18,079.3 K (2009: € 17,706.2 K).

The margin (relative to sales proceeds) was 8.7 %, a steep 1) rise on the previous year's value of 5.0 %. Germany 61%

Indirect expenditures

Indirect expenditures decreased by a significant – 8.4 % from € – 51,712.1 K to € – 47,354.5 K. The decrease was 1) Real estate in Switzerland is allocated to the Germany segment

MANAGEMENT REPORT

Revaluation result As a result of bonds issued in the final quarter of 2009, In 2010, the revaluation result was € 46,716.1 K com- financing costs increased by 8.3% to € – 117,446.3 K. pared to € – 129,086.5 K in 2009. A significant proportion of the result (€ 14,664.0 K against € 8,488.5 K in the pre- This figure was counterbalanced by a negative result vious year) was accounted for by real estate for which from the valuation of interest-rate hedges that was much sales had been agreed but which had not been legally fi- improved on the value for the year before (€ – 4,445.9 K nalised by the balance sheet date or an interim balance in 2010, € – 30,123.2 K in 2009). Overall, these derivative sheet date (owing to conditions precedent, for example). charges constitute largely a non-cash valuation result. In such cases, the sales price stated in the contract is applied for the valuation. In economic terms, sales profits Moreover, in contrast to the previous year, the contribu- are moved to the valuation result; where the sale is exe- tion to the result from associated companies was almost cuted in the subsequent period, this will produce a neu- neutral (€ – 328.3 K in 2010 against € – 7,315.7 K in tral sales result by definition. 2009).

From a regional viewpoint, the revaluation result com- The result from financial investments again rose sharply, prises total devaluations of € – 12,377.9 K in the Eastern to € 14,417.9 K in 2010 from € 8,821.7 K in 2009. This and South Eastern Europe segment as well as positive was partly due to the significant price recovery in securi- contributions of € 18,419.4 K in Austria and € 40,674.6 ties held as current assets. K in Germany. The latter figure was largely down to value increases on development properties under construction, In addition to interest paid as shown in the income sta- with the greater part thereof stemming from upward va- tement, interest of € 6,851.3 K was capitalised for devel- luation linked to completion of the first section of Tower opment properties under construction. 185. Taxes on income and earnings For an explanation of factors critical to the valuation of Overall, the developments described above gave rise to properties, see also the 'Property valuation' section. earnings before taxes (EBT) for 2010 in the amount of € 75,759.4 K, compared to € – 134,521.9 K in 2009. Of the Earnings before interest and taxes (EBIT) taxes on income totalling € – 31,940.7 K (2009: In overall terms, the factors outlined above brought € – 198.0 K), current taxes, mainly resulting from sales of about a sharp increase in earnings before interest and real estate in Germany, accounted for € – 25,896.4 K. taxes (EBIT), from € 3,006.4 K in 2009 to € 183,334.3 K in 2010. The Eastern and South Eastern Europe segment is Result for the period playing a major part in the turnaround, having improved At € 43,818.7 K, the result for the period was positive

its EBIT from €– 127,112.3 K to € 14,916.4 K, thanks to a (2009: € – 134,719.9 K). The share attributable to non-con- much reduced revaluation loss. A rise in EBIT was also trolling interests stood at € – 1,596.6 K, compared to achieved in other segments: the figure was € 44,097.4 K € – 57,804.9 K in 2009. The main factor behind this steep in Austria (2009: € 21,213.1 K) and € 124,320.5 K in fall was the loss of non-controlling interests in CA Immo Germany (2009: € 108,905.7 K). International AG as a result of the share purchases and subsequent merger in 2010. Financial result The financial result for 2010 of € – 107,574.9 K reflects The share attributable to parent company shareholders an improvement on the previous year's value of was € 45,415.3 K in 2010, compared to € – 76,915.0 K in € – 137,528.3 K. This overall development is the result of 2009. various (and sometimes contrary) effects.

MANAGEMENT REPORT

Cash flow FFO funds from operations Operating cash flow for 2010 was € 120,948.8 K (2009: Funds from operations before taxes (FFO) amounted to € 120,519.1 K). The change largely reflects the movement € 51,008.0 K in 2010. The decrease of around 7.0% com- in EBITDA between the periods. Cash flow from opera- pared to the previous year was largely due to the decline ting activities increased from € 130,758.3 K to in net operating income attributable to letting activities as € 172,032.9 K. outlined above.

Cash flow from investment activities stood at As a result of the rise in taxes paid (from € – 12,219.7 K € – 343,726.3 K in 2010, compared to € 72,767.3 K in to € – 44,605.0 K) funds from operations after taxes fell to 2009. The change was due to higher investment levels in € 6,403.0 K. The rise in taxes paid is linked to the tax bur- development projects, the downpayment for the acquisi- den from sales in Germany. In a number of real estate sation of Europolis AG made in the third quarter of 2010 les in the past two years, fiscal book values, based on his- (€ 136,000.0 K) and the use of funds to acquire shares in toric values, have been well below fair values or the sales CA Immo International AG (€ 99,044.9 K). Income from values generated. The sale of such real estate led to reali- the sale of long-term property assets also increased last sation of these deferred taxes as a consequence. This pro- year. blem is expected to diminish over the next few years; in the case of new development projects in particular, there Accordingly, the raising of finance has increased signi- will be greater equivalence between fiscal book values ficantly: after taking interest paid into account, the cash and the fair values critical to accounting. flow from financing activities reached € 29,102.1 K (2009: € – 26,501.6 K).

SUMMARISED CASH FLOW STATEMENT FUNDS FROM OPERATIONS (FFO)

€ m 2010 2009 Change € m 31.12. 31.12. MANAGEMENT REPORT 2010 2009

Cash flow from – - business activities 172.0 130.8 32% Net income before taxes before minorities 1) 75.8 134.5 - Investment activities – 343.7 72.8 >100% Depreciation and amortisation 3.7 10.4 - financing activities 29.1 – 26.5 >100% Revaluation results – 46.7 129.1 Changes in cash and cash thereof result from revaluation of sold equivalents – 142.6 177.0 >100% properties 14.7 8.5 Foreign currency gain/loss – 0.7 – 2.6 Cash and cash equivalents Corr. At-Equity income 1.2 8.3 - beginning of the business year 497.2 321.4 55% Valuation of financial instruments 3.1 28.5 - changes in the value of foreign Funds from Operations before taxes 51.0 47.7 currency 0.2 – 1.2 >100% Taxes paid – 44.6 – 12.2 - the end of the business year 354.8 497.2 – 29% Funds from Operations 6.4 35.5

1) before minority interests

MANAGEMENT REPORT

SUMMARISED CONSOLIDATED BALANCE SHEET

2010 2009 Change

€ min % € min % in %

Properties 3,520.4 80 3,386.3 79 4 Prepayments made on properties 0.0 0 0.5 0 – 100 Prepayments made on investments in properties 136.2 3 0.2 0 >100 Intangible assets 31.5 1 39.5 1 – 20 Financial and other assets 79.8 2 77.1 2 4 Deferred tax assets 14.1 0 24.6 1 – 43 Long-term assets 3,782.0 86 3,528.3 82 7

Receivables 147.0 3 149.3 3 – 2 Assets held for sale 46.5 1 6.0 0 >100 Property intended for trading 45.3 1 122.9 3 – 63 Cash equivalents and securities 358.6 8 504.1 12 – 29 Short-term assets 597.4 14 782.4 18 – 24

Total assets 4,379.4 100 4,310.6 100 2

Shareholders' equity 1,659.9 38 1,729.2 40 – 4 shareholders' equity as a % of statement of financial position total 38% 40% 0 475.6 11 472.5 11 1 Long term financial liabilities 1,412.7 32 1,379.7 32 2 Short term financial liabilities 236.9 5 124.3 3 91 Other liabilities 478.1 11 475.2 11 1 Deferred tax assets 116.2 3 129.8 3 – 10

Total liabilities and shareholders' equity 4,379.4 100 4,310.6 100 2

Balance sheet - Assets Tower 185 in Frankfurt (€ 200,180.00 K), the first phase of The situation on the assets side changed only slightly the Poleczki Business Park in Warsaw (€ 40,870.0 K) and during 2010 compared to 31 December 2009. At the end the pro-rata share of the Megapark property in Sofia of the year, total property assets (i.e. investment proper- (€ 34,430.0 K). ties, properties under development and properties held as current assets) stood at € 3,612,215.8 K, a rise of around A total of € 250,975.7 K was invested in investment pro- 2.7%. In the case of investment properties, book value de- perties under development in 2010, with upward valua- ductions resulting from sales were overcompensated by tions accounting for € 49,864.8 K. However, because of upward valuations as well as the reclassification of prop- the aforementioned reclassifications linked to comple- erties under the item 'Investment properties under devel- tions and the sale of the Nord 1 project in Frankfurt, opment' as a result of completions. The main additions / which was finalised at the turn of the year, this balance reclassifications were the first construction phase of sheet item declined overall from € 962,459.0 to

MANAGEMENT REPORT

€ 790,582.0 K. This conforms with the company's stated Increased stake in and subsequent merger with strategic objective of reducing the proportion of develop- CA Immo International AG ment sites in the portfolio as a whole. CA Immobilien Anlagen AG increased its shareholding in CA Immo International AG during 2010, from around

The item 'Prepayments made on investments in proper- 63 % at the beginning of the year to approximately 97 % ties' in the amount of € 136,200.0 K is almost entirely in September 2010 by means of a public offer. Since the attributable to the first instalment for the acquisition of price at which shares were acquired was below the book Europolis AG. value per share of CA Immo International AG, the acquisition entailed a rise in capital reserves of € 41,428.90 K. Cash and cash equivalents stood at € 354,763.8 K as at The merger of CA Immo International AG with 31 December 2010, roughly € 142,435.5 K below the va- CA Immobilien Anlagen AG, which was entered in the lue at the start of the year. The main reasons for the de- company register in the fourth quarter of 2010, has had crease were the first instalment for Europolis (as men- only minor implications for the balance sheet. The loss tioned above) and the outflow of funds to acquire shares of minority shareholders at CA Immo International AG in CA Immo International AG. Total assets rose margin- has also brought about a significant drop in non-con- ally to € 4,379,462.8 K. trolling interests recognised on the balance sheet (from € 170,155.1 K to € 18,170.6 K). Balance sheet - Equity and liabilities Shareholders' equity Hedging As a result of the merger with CA Immo International The positive effects of the increased holding in AG, the company's capital stock increased from CA Immo International AG were counterbalanced by a € 634,370.0 K to the current level of € 638,713.6 K. Un- sharp decline in the valuation of interest-rate hedges en- der the terms of the merger, 597,460 new shares were tered in the balance sheet as cash flow hedges (swaps). issued, raising the number of ordinary shares out- As at 31 December 2010, the negative valuation result of standing to 87,856,060. these cash flow hedges recognised in equity stood at €– 72,716.40 K, a decrease of € – 14,424.80 K on the pre- MANAGEMENT REPORT

According to the company's information, around 88 % vious year's figure. of the shares were in free float as at key date 31 Decem- ber 2010; the remaining 12 % or so are held by UniCredit Financial liabilities Bank Austria AG along with four registered shares that Financial liabilities increased by 7.5% to entitle the bank to nominate one Supervisory Board € 2,125,216.4 K. Net debt (financial liabilities less cash member for each share. The voluntary partial takeover and cash equivalents) increased from € 1,472,322.5 K to bid that took place early in 2011 raised the bank's share € 1,766,599.1 K; gearing (ratio of net debt to shareholders' to around 16.9 % as at 18 February 2011. equity) rose from 85.1% as at 31 December 2009 to 106.4% as at 31 December 2010. As at key date 31 December 2010, non-utilised authorised capital (article 169 of the Austrian Stock Corporation The Group also has access to credit facilities for projects Act) amounted to € 312.8 m (up to 43,031,840 no-par va- under development; payment dates are set by the banks lue shares) which can be utilised against cash or contribu- as construction work progresses. The balance of financial tion in kind by 8 August 2012 at the latest; contingent liabilities contains the current utilisation of credit; joint capital (article 159 of the Austrian Stock Corporation Act) ventures are recognised according to the amount of the amounted to € 317.2 m (up to 43,629,300 no-par value holding. shares). The company itself did not hold any treasury shares in 2010 Around 99 % of financial liabilities are in euros. CA Immo has a comprehensive interest rate hedging stra- Shareholders' equity (including non-controlling inter- tegy to hedge against interest rate risk: long-term loan fi- ests) decreased by – 4.0% from € 1,729,160.1 K to nancing is concluded with interest hedge agreements in € 1,659,938.5 K. Aside from the annual result, two factors the form of interest rate swap transactions or fixed rate in particular contributed to this development: agreements. As at 31 December 2010, 23.8% of financial liabilities (and in particular the issued bonds) were secured with fixed interest rates. Interest rate hedging in-

MANAGEMENT REPORT

struments with a nominal value of € 1,909,316.9 K were FINANCING RATIOS also in place as at the balance sheet date. In total, therefore, the net-nominal value hedged by means of fixed € m 2010 2009 rates, swap contracts or caps stood at 98% of the no-

minal value of financial liabilities. The high ration arises from swap contracts in which the original underlying Shareholders' equity 1,659.9 1,729.2 liability was redeemed early.

Short term financial liabilities 236.9 124.3 The net present value of swap contracts is currently ne- Long term financial liabilities (incl. bond) 1,888.3 1,852.2 gative on account of the fall in the yield curve over the Cash equivalents (including short-term past two years. The net present value of the interest rate securities) – 358.6 – 504.1 swaps totalled € – 136,942.0 K as at 31 December 2010 (2009: € – 114,958.1K). Where the present value is nega- Net debt 1,766.6 1,472.3 tive, the figure is entered in the balance sheet under 'Other liabilities'; where it is positive, it is entered under Gearing 106% 85% EBITDA / net interest (factor) 1.4 1.4 'Other receivables'.

The average interest rate on bank debt and the bonds (after accounting for directly attributable interest-rate Net asset value

hedges) stood at 4.71 % (2009: 4.74 %). The NAV (= (shareholders' equity excluding minority interests under IFRS) stood at € 1,641.8 m as at 31 De- As at 31 December 2010, the maturity profile of finan- cember 2010 (18.7 € per share), equivalent to an increase cial liabilities by year was as follows: of 4.6%. Aside from the annual result, the change reflects the other changes to equity outlined above.

The table below shows the conversion of NAV to NNNAV in compliance with the best practice policy recommendations of the European Public Real Estate As- sociation (EPRA).

As regards calculation of the EPRA NAV, given that the share price of the CA Immo share on the balance sheet date was for the first time above the conversion price of the convertible bond issued in quarter four 2009, the first step was to account for dilution effects of a hypothetical exertion of the conversion option. Calculated in this way, the diluted NAV stood at € 1,772.3 K (17.8 € per share).

The (diluted) NNNAV per share was € 18.1 as at 31 De- cember 2010. Not accounting for dilution effects, the NNNAV as at 31 December 2010 stood at € 1,664.9 K (€ 19.0 per share), roughly 2.6% above the value for 31 December 2009 (€ 18.5 ).

The number of shares outstanding as at 31 December 2010 was 87,856,060 (31 December 2009: 87,258,600). The increased number of shares led to the merger with CA Immo International AG as described above. When accounting for dilution effects arising from a fictitious full exercising of the convertible bond, the number of shares is 99,513,889

MANAGEMENT REPORT

NET ASSET VALUE (NAV) AND TRIPLE NET ASSET VALUE (NNNAV) AS PER EPRA DEFINITION

€ m 31.12.2010 31.12.2010 31.12.2009

undiluted diluted diluted = undiluted Equity (NAV) 1,641.8 1,641.8 1,559.0

Computation of NNNAV Exercise of options 0.0 130.5 0.0 NAV after exercise of options 1,641.8 1,772.3 1,559.0 NAV/share in € 18.69 17.80 17.87

Value adjustment for - own use properties 1.7 1.7 0.6 - properties held as current assets 8.6 8.6 23.4 - financial instruments 72.7 72.7 58.3 deferred taxes 70.6 71.2 65.7 EPRA NAV after adjustments 1,795.4 1,926.6 1,707.0 Value adj. for financial instruments – 72.7 – 72.7 – 58.3 Value adjustment for liabilities – 15.4 – 7.3 – 0.2 deferred taxes – 42.4 – 42.4 – 36.4 EPRA NNNAV 1,664.9 1,804.2 1,612.1 MANAGEMENT REPORT

EPRA NNNAV per share in € 19.0 18.1 18.5 Change of NNNAV against previous year 2.6% n.a – 9.9% Price (31.12.) / NNNAV per share – 1 -37.15 -34.31 -57.24 Number of shares 87,856,060 99,513,889 87,258,600

MANAGEMENT REPORT

OUTLOOK

Economic indicators for the main markets of the Major risks and uncertainties in respect to the 2011 CA Immo Group clearly show the recovery that started in outlook 2010 gathering pace. Against this background, we expect Our predictions for 2011 are subject to certain assump- the key factors that drive real estate markets – including tions on general conditions as well as parameters specific demand for rental premises and vacancy rates – to impro- to the real estate sector. The economic picture remains ve steadily. unpredictable, which means more uncertainty as to whether we will meet our targets for investment volumes, However, the decisive element in the financial figures realisation timeframes and revenue. for the CA Immo Group in 2011 will be the initial consolidation of Europolis AG, which will significantly ex- We believe the main factors influencing our business pand our property assets to some € 5.1 bn. We expect ren- plans for 2011 will be tal income to increase to approximately € 100 m as a consequence, which in turn will have a highly positive influ-  Trends on international capital markets and the effects ence on the earnings position of the CA Immo Group. of these on economies in the regions in which we oper- ate. During 2011, we will once again arrange selective sales from a portfolio now expanded by Europolis, and we will  The extent of the impact of economic developments on seek to raise the total sales volume in comparison with demand for rental premises and rental prices across our the figure for 2010. Sales will be counterbalanced by in- various regions. vestment of some € 250-300 m, especially in current development projects  The accessibility (and cost) of financing with outside capital. On the basis of these activities, and assuming further improvements in property valuations as well as little  Developments on the real estate investment market, the change in interest rates from the end of 2010, the Man- associated price trend and the resultant effects on the agement Board anticipates a return on equity of at least value of our portfolio.

5 % for 2011. A similar increase in the NAV is also a rea- listic possibility. Provided our targets are reached, the  The speed at which planned development projects are Management Board has every intention of proposing to realised (which will largely depend on the availability the Ordinary General Meeting for 2011 the payment of a of necessary external debt capital and equity).

dividend of around 2 % of NAV for the first time.  Political, fiscal, legal and economic risks; the transpar- Outlook on the capital market ency and development level on our real estate markets. As 2011 began, the public real estate sector appeared to be in much better health than at any time in the past three  The general development of interest rates. volatile years. If the more optimistic mood in the field continues, the effects on the CA Immo share price are likely to be positive.

MANAGEMENT REPORT SUPPLEMENTARY REPORT

The following activities are reported for the opening CA Immo will build an InterCity hotel for the Steigen- months of business year 2011: berger hotel group on the Europacity site close to Berlin's main rail station; a 20-year lease agreement was con- At the turn of the year, the CA Immo Group acquired cluded in February. The eight-floor property, which will

100 % of the shares in Europolis AG. The date of initial have around 410 rooms and gross floor space of consolidation was 1 January 2011, and the acquisition 19,800 sqm, has been designed as an upper-mid-range will be reflected in the interim financial statements for 31 hotel. The approximate investment volume is some March 2011. For full details on Europolis, please refer to € 54.6 m. Construction of the 30-metre structure will the section ‘Profile of Europolis’. commence in quarter three of this year.

UniCredit Bank Austria AG holds an approximate The laying of the foundation stone for the green build-

stake of 16.9 % in CA Immobilien Anlagen ing in Europacity known as TOUR TOTAL took place in Aktiengesellschaft February. Completion of the 69 m tower, which will serve On 29 January 2011, UniCredit Bank Austria AG an- as the new German headquarters of French oil company nounced a voluntary public takeover bid in accordance TOTAL, is scheduled for the third quarter of 2012. with article 4ff of the Austrian Takeover Act to the shareholders of CA Immobilien Anlagen AG ('CA Immo') with a view to acquiring their shares CA Immo. The offer price SERBIA was € 12.35 per CA Immo share. The takeover bid was open to acceptance until 16 February 2011. At the time of Under the terms of a 2007 cooperation agreement, declaring the takeover bid, the bidder held 10,438,224 CA Immo acquired real estate close to a motorway exit shares in CA Immo, equivalent to a stake of 11.88 % in near Belgrade with the aim of building a logistics centre the capital stock of CA Immo. During the acceptance pe- (amongst other things) in a project entitled Novi Banovci. riod, the bid was accepted in respect of 4,402,326 CA Immo sold its 50 % stake in the project development CA Immo shares, equivalent to a stake of approximately company at the end of January 2011. MANAGEMENT REPORT 5.01 % in the total capital stock of CA Immo. With the transfer of the new shares, and taking into account shares held prior to the takeover bid, the bidder will hold SLOVAKIA 14,840,550 CA Immo shares, equivalent to a stake of around 16.9 % in the total capital stock of CA Immo. Construction of a multi-level mixed use building with around 34,000 sqm of net effective area (office, retail and residential space) had been planned in Bratislava through GERMANY a 50:50 joint venture with Sekyra. The project development company owned a plot of land spanning some The sale of four construction sites spanning a total of 7,410 sqm in the centre of Bratislava, close to the old 17,500 sqm in the Düsseldorf district of BelsenPark was town area. When approval for the project as contractually agreed in January 2011. The investors PANDION AG and envisaged failed to materialise, CA Immo's participation PATRIZIA Immobilien AG will develop up to 350 apart- in the project company reverted to Sekyra on 25 January ments in BelsenPark. 2011. The value of the real estate had been adjusted in 2009 owing to the market situation. CA Immo plans to construct the new headquarters of Mercedes-Benz Vertrieb Deutschland (MBVD) in the Berlin district of Friedrichshain; the approximate invest- POLAND ment volume will be € 72.1 m. A corresponding lease contract, which will run for 10 years from 2013 in the In January, additional lease contracts covering some first instance, was signed in February 2011. Construction 3,000 sqm were concluded with Kapsch in the first con- of the building, which will be realised in compliance struction zone of the Poleczki Business Park complex in with DGNB green building standards, is likely to start in Warsaw, which was completed in 2010. As a result, the the autumn of 2011. complex is 74 % let.

MANAGEMENT REPORT PERSONNEL

The CA Immo Group has head offices in Austria and a Integration of Vivico: functional merger complete presence through its subsidiary Vivico Real Estate in The process of integration into the CA Immo Group for Frankfurt, Berlin, Munich and Cologne. The company is the German subsidiary Vivico Real Estate was completed also represented in Eastern Europe with subsidiaries in by means of a functional merger in 2010. The main con- Budapest, Warsaw, Belgrade and Bucharest. As at 31 De- cern in the process was to identify and utilise synergy at cember 2010, the Group employed a total of 3181 people the level of both CA Immo and Vivico, thereby raising (compared to 332 on 31 December 2009). efficiency whilst cutting costs through dual structures. The structural changes brought about a fall of roughly

Re-integration of CA Immo International 10 % in like-for-like terms in the staffing levels of For the most part, the business activities of CA Immo CA Immo in Austria and Germany. In some cases, indi- are centrally controlled from the head office in Vienna. vidual solutions were applied to support the future career Until 15 November 2010, the consolidation date of development of affected persons. Further details on CA Immo International, staff in the functional areas of Vivico are contained in the sections 'Investments and Investor Relations, Corporate Communications, Finance funds' and 'Segment report for Germany'. and Accounting, Controlling, Legal Affairs and Personnel as well as IT and Organisation were employed by Encouraging entrepreneurship CA Immobilien Anlagen AG and performed their tasks for Wages and salaries at CA Immo correspond to the sector both companies. The associated costs were divided be- and the market. In addition to the fixed salary, there is a tween the two companies according to requirements so variable component whereby the maximum bonus is set

that synergy could be utilised cost-effectively. Asset and at 10 % of the fixed annual salary for each staff member. Investment Management and Holding Management were The main prerequisite for variable remuneration is posi- managed separately by the individual companies and ab- tive consolidated net income after minorities. Performan- sorbed into CA Immo AG as at 15 November. The areas of ce-related bonus arrangements are in place for managerial property management, project control, bookkeeping and staff; these are defined in the form of annual operational facility management for the Eastern European investment targets with the consent of the Management Board. From properties are still overseen by local subsidiaries in Po- business year 2010 onwards, Management Board mem- land, Hungary, Serbia and Romania. CA Immo staff also bers and first-level managers have also had the option work in a joint executive capacity for CA Immo New (subject to appropriate personal investment) of taking part Europe where they and their teams provide the expertise in a long term incentive (LTI) programme, which will en- necessary for the management of the special fund. able them to share in the development of the Group over the medium to long term. For more details on this and the remuneration of the Management Board, please refer to 1 Thereof 5 % part-time employees the remuneration report.

PERSONNEL DISTRIBUTION WITHIN THE CA IMMO GROUP

2010 2009 Change White-collar Blue-collar Men Women Total White-collar Blue-collar Total Absolute in % employees staff employees staff

Austria 41 5 20 26 46 46 6 52 – 6– 12%

Germany 175 0 96 79 175 193 0 193 – 18 – 9% Eastern and South Eastern Europe 57 40 61 36 97 59 28 87 10 11%

MANAGEMENT REPORT

Total spending on personnel for the CA Immo Group in invests as necessary in the further education and training 2010 is € 25.3 m for white-collar staff and further € 1.5 m of its international workforce. Employee reviews in is for blue-collar employees. Training costs amounted to which staff from all departments discuss their perfor- € 57,100 in 2010. mance, potential and development prospects are held annually throughout the Group. Staff provisions and safety at work CA Immo pays voluntary contributions towards retire- Alongside conventional training activities, CA Immo ment pensions for its staff. In addition, all employees are promotes active cooperation and international exchanges covered by collective accident insurance that provides of its staff members with research institutions, interest permanent coverage, both at work and outside of work. groups and associations, enabling them to remain at the leading edge of new developments in the real estate sector. Serious occupational injuries and absences from work For more details, please refer to the 'Corporate Social are not recorded across the Group. Health and safety Responsibility' section. plans are drawn up for construction sites and safety guid- ance is regularly communicated. A company doctor pro- Duty to consolidate corporate culture vides regular medical check-ups for staff of the subsidiary The commitment to sustainability at the heart of Vivico, and annual flu vaccinations are offered at the CA Immo strategy is mirrored in the company's staff po- head offices of the CA Immo Group. licy. With this in mind, managers and individual employees alike are urged to ensure transparent internal Women strongly represented communication at every hierarchical and regional level of We believe that for our company to be successful, our the company. With regard to the integration of the Euro- male and female employees must work together on the polis Group, various measures are planned for 2011 to basis of trust and equality. This means that all staff mem- promote identification on the part of staff members new bers must be treated in accordance with the same princi- to CA Immo with the company's shared aims and values ples, with equal opportunities in terms of advancement and thereby reconcile the cultures of the two companies. and remuneration. The aim of our active personnel policy MANAGEMENT REPORT is qualitatively, quantitatively and structurally to increase the proportion of women in the workforce as a whole, in trained positions and at all managerial and executive le- PERSONNEL DISTRIBUTION vels. The proportion of women in the CA Immo Group BY COMPANY OFFICE stands at approximately 44 % as at 31 December 2010. Although the composition of the Management Board is Austria 20% exclusively male, the proportion of female executives at the second level of management (Group manager level) Poland 9% stands at 36 %, which is close to being in compliance with the European Union's much-discussed proposal on Romania 4% introducing a female ratio of 40 % for managerial positions. Hungary 10% Investing in know-how In a rapidly evolving market environment, maintaining Serbia 2% dynamic staff development is absolutely central to ensuring the gainful management of real estate and the effi- Germany 55% cient realisation of development projects. As part of its requirements-based personnel management, CA Immo

MANAGEMENT REPORT RESEARCH AND DEVELOPMENT

The main aims of research and development activity at As regards project development, CA Immo seeks to se- CA Immo are to secure the value of real estate and the cure certification, which optimises the intrinsic value of a quality of life for users for the long term and to control, property for investors and tenants alike. The market quantify and communicate these activities through con- availability of certified properties – which are characte- sistent standards and certifications. The trend of the past rised, amongst other things, by low energy consumption few years has shown that sustainability is emerging as the and higher comfort – is very limited. For this reason, all decisive competitive factor in the real estate sector. development projects across the Group must qualify for certification. Two main certification methods are applied In order visibly to incorporate long-term effects into the within the CA Immo Group: the American Leadership in processes of the Group, the Management Board decided Energy and Environmental Design (LEED) certification to base its financial reporting on the standards of the and the seal of quality from the German Sustainable Buil- global reporting initiative (GRI)1, which promotes qua- ding Council (DGNB). litative measures to support sustainability through transparency, from 2010 onwards. Use of the system rooted in The evaluation criteria for LEED certification the GRI standards enables each department to group its (American sustainability standard) include: actions as regards sustainability by means of performance  Environmental compatibility of the land (including indicators, thereby maximising their effectiveness. Accor- location) dingly, the various sections of this report contain infor-  Efficiency of water consumption (rainwater use) mation on different aspects of sustainability.  Energy efficiency (operation/installation engineer- ing/energy sources) Economic, environmental and social goals of the  Raw materials and building materials (recy- sustainability mission in the real estate sector cling/regional materials/renewable raw materials)  Minimising the lifecycle costs of buildings  Quality of the interior (air/light/climate)  Minimising maintenance investment in relation to the development of new buildings CAST portfolio evaluation tool tested in 2010  Constructing and managing properties in a way that Different evaluation systems are used for the manage- conserves resources and minimises carbon emissions ment of properties on CA Immo’s various markets. Sys-  As far as possible, avoiding pollutants in the construc- tems such as the Austrian energy performance certificate tion, modification and use of properties and closing the are not internationally compatible. In 2010, therefore the cycle of building materials company decided to develop an in-house instrument for  Creating an appropriate living and working environment analysing and evaluating the sustainability of existing with social integration rather than ghettos buildings. The result is CAST, the CA Immo Sustaina-  Linking work, living and leisure time in the residential bility Tool. The tool was subjected to feasibility testing in scheme, thus creating a stable environment for the long the year under review, with 15 properties in seven coun- term tries assessed in accordance with the 62 CAST sustaina-  Minimising ‘pioneer risk’ in urban district development bility criteria. CAST will be implemented throughout the Group in 2011 so that the CA Immo’s entire international Areas of activity for the business divisions real estate portfolio can be rated. The planned roll-out  Planning, developing and constructing urban districts across the portfolio will facilitate fast and cost-effective

and individual properties overviews of the condition of properties inspected. 75 %  Managing stock properties of the group’s total office property stock shall be evalu-  Integrating and monitoring performance indicators in all ated by CAST in 2011, this quota will be raised up to

workflows 100 % in 2012.

More information on the long-term commitment of 1 For more information on GRI, visit www.globalreporting.org CA Immo is contained in the ‘Corporate social responsibility’ section.

MANAGEMENT REPORT FINANCIAL AND NON-FINANCIAL PERFORMANCE INDICATORS

In strategic terms, the business activity of CA Immo re- Vacancy rate and average rent volves around raising the value of the company over the Sound economic data feeds the demand for commercial long term. Central financial performance indicators (key premises and invigorates both building activity and the figures) are an important tool as regards identifying the property market. Cyclical discrepancies between supply main factors that contribute to the long-term increase in and demand are reflected in the utilisation rate and at- corporate value and quantifying those factors for the pur- tainable rents. Viewed over time, the vacancy rate and poses of value management. average rent are key indicators of a portfolio's quality and its successful management; they are also indicative of the The primary financial performance indicator in this asset managers' ability to respond in a timely fashion to context is the net income generated with the money economic influences. shareholders have invested (return on equity, RoE). The aim is to produce a ratio higher than the imputed cost of Location quality equity (we assume a medium-term rate of around 7.0 %) The quality of a site is a major criterion in property and thereby generate shareholder value. The return on marketing: the accessibility of a location, determined by equity for 2010 was around 2.8 %, below the target value infrastructure, plays a particularly crucial role. Changes for the year, which was therefore not attained. Despite in the quality of a location take place gradually and are this, we remain confident that the measures defined un- eventually reflected not only in price, but also in the der our strategy will enable us to return to an acceptable difficulty of attracting new tenants. return on equity in the medium term. Local presence Among the other quantitative factors used to measure Local knowledge and familiarity with markets are key to and manage our shareholders' long-term yield are the the effective cultivation of highly diverse regional mar- change in NAV per share, the operating cash flow per kets. For this reason, CA Immo maintains branch offices share, return on capital employed (ROCE) and economic in the company's main markets of Germany and Eastern value added (EVA; see table). Europe (the latter have been consolidated by the recent influx of Europolis staff members). MANAGEMENT REPORT Since the financial indicators ultimately demonstrate the operational success of our property business, they are Expertise and synergy preceded by a series of performance indicators that can- The competitive edge of CA Immo stems from the local not be immediately quantified in financial terms and knowledge of its operating employees and the utilisation which are key to measuring and managing our opera- of synergies in the Group, especially in the fields of pro- tional business: ject development and property marketing.

VALUE INDICATORS

2010 2009 2008 2007

Key figures per share NAV/share € 18.70 17.90 18.90 22.00

Chance in NAV/share % 4.5 – 5.3 – 14.1 6.8 Operating cash flow / share € 1.38 1.40 1.32 1.07

1) RoE in % % 2.8 – 4.8 – 13.4 3.3 ROCE 2) in % % 4.8 0.1 negative 5.2 EVA 3) € m negative negative negative 2.7

1) Return on Equity (profit-generating efficiency) = consolidated net income after minority interests / average equity (without minority interests)R 2) Return On Capital employed (ROCE) = net operating profit after tax (NOPAT) / capital employed 3) EVA (Economic Value Added) is a registered trademark of Stern Stewart & Co; EVA = Capital employed * (ROCEԜ– WACC); WACC 2010 = 5.0

MANAGEMENT REPORT RISK MANAGEMENT REPORT

The last business year was characterised by a slow but depictions of scenarios as regards the value trend for steady recovery on real estate markets. Compared to re- certain properties as well as exit strategies and financial cent years, risk factors specific to the market and to real planning. In addition, specific risk types are assessed at estate have lessened significantly. Real estate yield and regular intervals, with external advisors consulted: new the performance of the CA Immo share, both of which areas of risk not previously appearing in the risk inven- have come under severe pressure over the past couple of tory may be identified and included, whilst others may be years, improved to some extent, especially in the second classed as no longer significant or removed from the in- half of the year. Although CA Immo was largely spared ventory altogether. The last inventory of risk types took from tenant insolvency, vacancy in the portfolio has in- place in business year 2008; the categorisation of risks creased, mainly because of the withdrawal by Siemens defined at the time is still valid today. from the Erdberger Lände property; some tenants also required less office space on account of staff reductions. Risk management at all levels of the company Valuations have taken account of current vacancy levels CA Immo assesses risk according to substance, effect as well as rental agreements that will expire in the future. and the likelihood of occurrence. On that basis, risk man- Generally speaking, CA Immo performed well as regards agement is implemented at every level of the company lettings despite the somewhat subdued market environ- and is therefore binding on all organisational divisions. ment. Overall lettings performance of around From a strategic viewpoint, risk management includes the 175,000 sqm in 2010 was stimulated mainly by signifi- compilation of compulsory guidelines on investment po- cant new lettings and pre-letting in Germany (totalling licy. Operational risk management is concerned with some 57,000 sqm) as well as the large-scale letting agree- countering property-specific and general business risks. ment (approximately 32,500 sqm) with Post AG at the The company circumvents unexpected risk by means of Lände 3 site in Vienna. early warning indicators such as rent forecasts and vacancy analyses as well as the continual monitoring of lease agreement periods and the possibility of termina- RISK MANAGEMENT tions. The Management Board is involved in all risk- relevant decisions and bears overall responsibility for General such decisions. At all process levels, decisions are subject Systematic risk management is a key element of the to the dual verification principle. Clear internal guide- CA Immo Group’s internal controlling process with a di- lines and strategies, business and investment plans and rect bearing on strategic and operational decision-making the introduction of continuous reporting systems have within the company. The Group is exposed to many made it possible to monitor and control the economic kinds of risk as an international manager of property risks associated with everyday business activity. Meas- stocks and project developer. These risks have the poten- ures are applied to all Group subsidiaries. Investment tial to influence current operational business outcomes plans are also subject to scrutiny by the Supervisory and progress towards the strategic goals of the company. Board or its investment committee. The Controlling de- Therefore, the objective of risk management at CA Immo partment supports the realisation of risk management by is to identify at an early stage and continually monitor providing structured information and data; individual potentially hazardous developments as well as opportuni- matters are also spot-checked by the Internal Auditing di- ties so that suitable measures can be implemented as ne- vision. In 2010 potential hazard areas were investigated cessary. To be able to evaluate the company's risk posi- in connection with the issue of corruption. There was no tion at all times, CA Immo is constantly evaluating the le- evidence for the existence of crime. The internal monitor- vel of risk by means of regular reporting that takes ac- ing system (IMS) has been expanded to assist in the early count of the current situation of the company and the identification and monitoring of risks. The effectiveness market. In these reports, risks are documented in relation of risk management at CA Immo is appraised annually by to specific properties and projects. Other aspects of risk the auditor, who reports findings to the audit committee, reporting involve simulations and Supervisory Board and Management Board.

MANAGEMENT REPORT

STRATEGIC RISKS efficient communication that addresses the interests of investors and analysts and builds the trust of investors on Capital market and financing risk the basis of constant transparency. CA Immo’s compli- Refinancing on the financial market is an important ance programme comprises internal guidelines (including matter for CA Immo. It has become clear in recent years compliance guidelines), a code of conduct for staff, train- that the proper functioning of the capital market presup- ing and internal counselling for individuals as required as poses adherence to the regulations on the part of its par- well as the assertion of sanctions under employment law ticipants, and that breaches of the rules impair the trust of where violations occur. investors and thus make the procurement of capital (both shareholders’ equity and loan capital) much more diffi- The risk of (re)financing may remain a latent factor over cult. CA Immo addresses this capital market risk on sev- the years ahead. As regards the raising of loan capital, eral levels. The company is highly skilled at planning and CA Immo is increasingly seeking to establish or develop securing liquidity, and also covers itself by entering into business relationships with domestic and foreign banks equity partnerships (joint ventures) at project level as an (in addition to UniCredit Bank Austria, its principal alternative and supplement to established sources of bank). Financial planning for the coming years has thus equity capital procurement. More generally, CA Immo been carried out in detail, taking particular account of the regards capital market compliance as a fixed element of financial consequences of strategic targets (such as the corporate risk management involving not just observance steady depletion of the project pipeline and real estate of the applicable regulations, but also sales).

MANAGEMENT REPORT

The expiry profile of financial liabilities for the processes have been developed and are subject to con- CA Immo Group is reasonably stable over the next two tinual adaptation. Staff development is addressed by years. In the years up to 2014, the annual refinancing vo- means of active personnel management. lume will be below € 150 m, excluding Europolis (or below € 300 m (including Europolis); these figures relate Concentration (cluster) risk only to financing at property or project level. The refi- Concentration risk arises where individual investments

nancing of the 6.125 % CA Immo bond 09-14 (ISIN: lead to a defined upper value in the total portfolio being AT0000A0EXE6) and the convertible bond are scheduled exceeded as regards location or investment volume. In for 2014, provided conversion rights are not exerted. such cases, the potential market risk is significantly raised and the prospect of selling these properties is di- Project development also makes up a substantial part of minished (especially where the market environment is the CA Immo Group's business activity. For these projects constricted). On the other hand, exceptionally small pro- to be realised, it is essential that equity or additional loan perties raise the danger of excessive administration costs capital (project financing) is available. Delays in credit (in relation to rental revenue). For this reason, joint ven- lending can lead to delays in construction work, which ture partners are sought for large-scale investment initia- has a negative knock-on effect on project valuation; where tives in order to reduce the share of risk borne by pre-letting has been secured, this can result in the imposi- CA Immo considerably. To bring about a suitable balance tion of contractual penalties. Loss of rental revenue can in between expenditure and revenue, small properties turn have serious implications for the company's cash (which are generally acquired through portfolio pur- flow. Moreover, where construction costs increase, this chases) are regularly sold off and the composition of the can mean a danger of financing conditions being tight- portfolio is assessed on a quarterly basis. ened. With all of this in mind, CA Immo takes various steps to control the risks associated with project develop- Concentration risk is created where certain investments ment (cost monitoring, variance analyses, long-term li- lead to over-representation in the overall portfolio for a quidity planning, observance of minimum pre-letting particular region, country, specific usage type or tenant quotas, and so on). structure: this is because changes in the market can affect levels of demand which will impact negatively on the Expansion risk company's profitability. Concentration risk as regards Over recent years, the portfolio of the CA Immo Group tenants generally arises where individual tenants are has expanded rapidly. The realisation of investment over-represented in terms of rental revenue and rentable plans, the assimilation of fully acquired real estate pack- space and thus have a significant bearing on the earnings ages and companies and (not least) project development of the CA Immo Group (as was the case, for example, with pose major challenges for the company and its employees. the package of investment properties acquired from the Taking account of properties acquired through the take- state of Hesse in 2006). However, validity terms on exist- over of Europolis AG, CA Immo's property assets at the ing rental agreements and creditworthy tenants (such as start of 2011 stood at just over € 5 bn, equivalent to an the state of Hesse) will nullify concentration risk and the

average annual growth rate in excess of 30 % over the last risk of tenant withdrawal. As a countermeasure, espe- five years. Having come through this period of expansion, cially on the target markets of Eastern and South Eastern the clear priority for CA Immo now is to optimise the Europe, CA Immo applies regional investment limits existing portfolio rather than aim for further acquisitions. according to the size of the overall portfolio and, in the CA Immo is therefore flexibly adapting its pace of growth case of individual properties, the size of the respective to global (and especially regional) conditions. Expansion market. Aside from regional distribution, efforts are made planning is carefully coordinated with the planning of to ensure diversification in the tenant structure and usage financial and personnel resources. To prevent organisa- types. tional bottlenecks, service

MANAGEMENT REPORT

PROPERTY-SPECIFIC RISKS exhaustive market analyses prior to any investment decision and as a regular part of portfolio management; the Market and liquidation risk company also maintains constant contact with leading The real estate sector is closely intertwined with the experts in the sector. To minimise regional risks, the ideal macroeconomic developments on its markets. As regards resale times for the largest properties in the portfolio are the demand for commercial real estate in particular, eco- considered as part of regular discussions concerning nomic growth is proving to be a determining factor. The location quality, property quality and market changes. In recent recessionary years have thus been as challenging this way, CA Immo reduces the risk of not being able to as might be expected. Not only was the investment mar- sell properties, or only being able to sell them at a dis- ket brought to a halt, but companies shelved their expan- count. Through this approach, key early indicators of sion plans, significantly cutting the demand for office market risk are systematically applied to evaluations of space. In 2010, nearly two years after the financial and investment and project plans, and thus to medium-term economic crisis took hold, activity in the global economy corporate planning. picked up pace once again, sparking signs of recovery and renewed growth as the year progressed. However, the Depending on market trends, CA Immo is subject to a pace of economic recovery varied from one country to certain profit fluctuation risk associated with both resale another. The European economy as a whole is expected to and vacancy risk: where floor space is not let, income is maintain its recovery in 2011, with the upturn driven by forfeited, vacancy costs arise and the value of a property growth engines like Germany. Improving growth figures falls. The vacancy level for CA Immo in Austria increased are also expected on the CA Immo markets of Central and enormously last year owing to the withdrawal by Siemens Eastern Europe, albeit to strongly varying degrees. Infla- from the Erdberger Lände property; however, a desirable tion rates are likely to continue rising in the various new tenant was secured in the form of Post AG, which countries. will lease around 32,500 sqm of floor space on the site as from 1 August 2011. On account of market conditions, Office properties constitute the core business for vacancy levels are also very high in (South) Eastern CA Immo. Given that good quality properties are in short Europe, and particularly Hungary and Serbia. Over the MANAGEMENT REPORT supply, however, the price of more risky value-added business year ahead, therefore, the focus will switch to investments is also set to increase sharply. With stable lettings activity in these regions as well as properties growth rates, rising corporate profits and attractive levels under construction in Germany. The danger of loss of rent of consumption, Western European countries promise is also a possibility; after all, we still cannot rule out the consistent growth potential at low risk. Feri Finance (a risk that in spite of the economic upturn, certain tenants corporate group specialising in financial and portfolio will not have come through the recent crisis unscathed. advice, economic research and rating) is forecasting rental Risk of this nature faces the company at its Pilsen and rates to rise by 3.2 % in 2011 and 4.2 % in 2012. Although Prague hotel properties in particular. The potential for the development of rental rates in prime locations in Ger- risk is generally countered by demanding securities (bank many can be below average, German cities offer a high le- guarantees) in order to offset any rent arrears. The risk of vel of security, with low volatility of rents and yields. lost rent is also taken into account to a sufficient degree Rent levels bottomed out in 2010 and are likely to start ri- in the valuation of relevant properties. To keep vacancy sing again in 2011. Although European locations will and rent losses to an absolute minimum, CA Immo offer the best overall investment opportunities in 2011, screens the creditworthiness and reputation of potential supply will remain limited as demand, as it did last year, tenants. The budgeted and actual revenues generated by continues to focus on buildings in prime locations with all properties are continually monitored, and structured long-term lease contracts ('core' properties). According to quality checks are carried out. Lease agreements generally recent estimates, however, these properties comprised have a balanced lease expiry profile, but rent reductions just 5–15 % of the total market in 2010. The selective in the course of contract extensions remain a risk. The stance of investors will therefore be reflected in the price company cooperates with reputable estate agents when level. Bearing this in mind, CA Immo performs its own seeking new tenants.

MANAGEMENT REPORT

Since the location of real estate has a decisive influence South Eastern Europe in particular, however, this may not on rentability and long-term letting potential as well as be achievable (or only possible to a limited degree) on the earning power and sales revenue of a property, and account of the specific market situation. In this region, therefore represents the greatest risk associated with real lease contracts tend to be signed only when there is a estate investment, CA Immo commissions external ex- sufficient likelihood of project completion and projects perts to carry out regular analyses of locations and trends. are sometimes initiated even with low levels of pre- Locations that are candidates for investment are assessed letting. separately according to additional requirements. Fluctuating building costs also pose a risk to CA Immo. Project development and investment cost risk At present, costs are rising in virtually all regions in Since 2006, the CA Immo Group has significantly in- which CA Immo is involved in project development. The creased its involvement in development projects, with the price trend in the raw materials sector (steel, aluminium, area gaining a boost from the acquisition of Vivico Real copper, etc.) is particularly important. With this in mind, Estate GmbH in Germany. In Eastern Europe, these activi- cost pools are formed for large-scale projects and con- ties are generally managed through the CA Immo New tracts are awarded singly or in batches. All current pro- Europe project development fund. The objective is to ge- jects are being implemented within their approved budg- nerate extra income through the addition of value inher- etary frameworks. ent to project development. Project business is, however, associated with higher risk. Risks can arise from impon- Another cost factor is the build quality of a property, derables such as delays in the property use approval or which has a considerable influence on the costs of its planning permission processes, cost/deadline overruns, management. A property that does not comply with cur- construction defects and so on. Even with meticulous rent standards can generate higher investment costs in planning and monitoring, these risks can never be com- connection with restoration and improvement measures, pletely eliminated. Project development risk has in- or fail to attract tenants; this in turn adversely affects the creased substantially in recent years as capital market earning power of that property. To stop this happening, risks, financing risks and geopolitical risks have intensi- CA Immo undertakes technical due diligence prior to fied and general conditions have changed. Original pro- acquisition in order to determine a property’s quality and ject costings have thus had to be revised in the (South) the compliance of its fixtures and fittings with CO2 crite- Eastern European portfolio, in some instances considera- ria, energy performance certificates and so on. The com- bly. CA Immo is responding to the evolving situation as pany also maintains close contact with tenants and prop- necessary, adjusting book values clearly and appropri- erty managers so that any hidden construction defects can ately. In general, CA Immo is countering project devel- be remedied quickly and cost-effectively. CA Immo over- opment risk by choosing partners and service providers sees an international portfolio of properties built at dif- with care whilst maintaining stringent controlling, both ferent times and in varying conditions, and these proper- internally and externally. Controlling involves regular ties must be regularly inspected and refurbished as neces- cost monitoring, variance analyses and appropriate re- sary. An instrument for analysing and evaluating the porting. The start-up losses that typically arise in connec- sustainability of portfolio buildings was produced and tion with project development also have a detrimental tested in 2010. The tool was mainly applied to offices, effect on earnings with the accrual of non-capitalisable with 15 of these properties from the Group's overall port- costs. Over the project lifecycle, these losses are offset folio assessed according to environmental, economic and against revenue from lettings and sales; accordingly, social criteria. The CA Immo Sustainability Tool (CAST) projects are only launched after comprehensive and long- maps a total of 62 sustainability criteria. When the tool is term liquidity planning. CA Immo invariably seeks to rolled out as planned to cover the entire portfolio, it will

secure pre-letting (50–60 % in Germany, for example) be possible to obtain fast, cost-effective overviews of the before actually commencing a project. In Eastern and condition of assessed properties.

MANAGEMENT REPORT

When implementing its own projects, CA Immo seeks to against the risk of interest rate changes arising from un- ensure that properties qualify for green building certifica- derlying transactions. On account of market conditions, it tion. A catalogue of criteria is applied to ensure economic, has been necessary over the past three years to set up environmental, technical, social and functional quality. derivative financial instruments for 100 % of the out- These sustainability standards in the real estate develop- standing amount on new loans. Even these instruments ment field will be gradually rolled out to all new can be subject to changes in value, however. CA Immo Group projects: every new project launched by the Group will either be sustainability-certified or, at least, Interest rate swaps have proved to be particularly ineffi- constructed in compliance with certification standards. cient in connection with early loan repayments and property sales (around € 261 m of fair value swaps after net- Property valuation risk ting with offsetting swaps ). In the case of contracts classi- Real estate prices are subject to considerable fluctuation fied as fair value derivatives, value changes are directly on account of changing economic conditions (rising and shown as revenue or expenditure in the income statement falling interest rates, expanding or contracting economies, and are charged along with additional interest payable imbalance between the supply and demand of real estate from interest rate swaps no longer required for hedging and other factors). In common with most companies in purposes. This generally applies to non-cash valuation the sector, CA Immo opted for the market value method results. By contrast, changes in the value of contracts that in the conversion of its accounting to IFRS. Changes in can be defined as cash flow hedges (and the majority of market value can lead to major discrepancies in results, the swaps used by CA Immo come into this category) are and this has produced some very negative outcomes in shown as changes in shareholders’ equity. In addition to the past two years. Such value reductions curtail not only the valuation result, the delta between the interest refer- results but also equity capital; this in turn adversely af- ence rate and the swap rate is posted as cash expenditure. fects creditworthiness, with loan-to-value covenants un- able to be upheld in some circumstances. To maintain its To neutralise the interest rate risk associated with these creditworthiness, CA Immo agrees appropriate leverage in swaps, two new countervailing swaps with a nominal advance and secures appropriate restoration periods in value of € 105.4 m were concluded in business year 2009 MANAGEMENT REPORT connection with financing. All CA Immo real estate is and one new countervailing swap with a nominal value externally valued once a year. of € 65 m was concluded in 2010, thereby producing a fair value hedging relationship in this amount. Following the acquisition of Europolis (which, unlike CA Immo, FINANCIAL RISKS does not hedge against interest rate risks), the hedging

quota was reduced to the reasonable level of around 76 %. Risks linked to liquidity, interest rates, credit and currencies make up the main financial risks. Full details of No risks constituting a serious and permanent threat to these risks, along with a corresponding liquidity analysis, the company exist at the present time. Sufficient provi- are also provided in the notes section. The various finan- sions have been formed for all identified risks. A list of cial risks facing CA Immo are as follows: all major interest-bearing liabilities and concluded swaps (including maturity dates) appears in the notes. Interest rate risk For the CA Immo Group, risks associated with changes Currency risk in interest rates tend to arise in connection with long- Owing to investment activity abroad, the management of term financing with outside capital. CA Immo uses a mix currency risk is an important element of risk management. of long-term fixed-rate and floating-rate loans to counter Currency changes generally affect earnings as a result of the interest rate risk. Some floating-rate loans are secured rental income and rents receivable in foreign currency by means of derivative financial instruments (interest rate (especially BGN, CZK, HUF, PLN, RON and RSD). Non- caps/swaps), which without exception are used to hedge cash effects on consolidated net income can result from

MANAGEMENT REPORT

the translation of individual financial statements of sub- projects at present (the Poleczki Business Park is an ex- sidiaries outside the eurozone. CA Immo counters this ception).Liquidity risk risk by pegging rents to a hard currency (EUR or USD), and no significant currency risk exists at present. Since Controlling liquidity means ensuring sufficient financial incoming payments are mainly received in local currency, means are available for the settlement of liabilities as they however, free liquidity (rental revenue less operating become due. The company is highly skilled at planning costs) is converted into euros upon receipt. Loans are ta- and securing liquidity in order to avoid bottlenecks and ken out in the currency underlying the relevant lease (this thereby circumvent unnecessary potential losses and mainly applies to financing in CZK and USD). Currency risks. Loans are usually agreed on a long-term basis in risks are rarely secured in connection with construction accordance with the investment horizon for real estate.

MANAGEMENT REPORT

Although the acquisition of Europolis and the purchase Environmental risk of CA Immo International shares that preceded the merger Environmental legislation has a critical bearing as re- of CA Immo International AG with CA Immo served to gards investing in real estate. The CA Immo Group can reduce the liquidity of the CA Immo Group, sufficient incur significant costs arising from its responsibility to liquidity remains to support planned investments and prevent specific damage to the environment; contamina- projects under construction. Even with meticulous plan- tion may be established, for example, from toxic sub- ning, however, liquidity risk cannot be eliminated, par- stances and materials in built structures. It is also possi- ticularly where capital requests linked to joint venture ble that changes in the law may require previously ac- partners are not viable. Moreover, capital commitments ceptable materials and substances to be subsequently are typical in the case of development projects. Given that eliminated. It is not possible to predict changes to legal Vivico, a company forming part of the Group, has a par- provisions, case law or administrative practice, or the ticularly high commitment in the case of the Tower 185 consequences that such changes will have on the earning project, the finalising of sales planned for 2011 is of criti- power of real estate; negative effects on the company's cal importance. To support liquidity, project budgets are assets, financial and earnings position are feasible. More- continually evaluated as regards the level and urgency of over, new regulations passed by legislators can have a capital required and efforts are made to cut the equity re- bearing on existing contracts and thus impact the value quirement by involving joint venture partners to a greater trend for real estate significantly. CA Immo therefore degree. incorporates these considerations into its wide-ranging assessments prior to every purchase. Appropriate guarantees are also required from sellers. In its capacity as a GENERAL BUSINESS RISKS project developer, the CA Immo Group makes use of environmentally sustainable materials and energy-saving Legal risks technologies wherever possible. In future, environmental In addition to the usual legal disputes that arise in the risks associated with investment properties, amongst sector (especially against tenants), CA Immo faces the risk other things, will be assessed by the CA Immo Sustain- of disputes with, for example, joint venture and project ability Tool (CAST). MANAGEMENT REPORT partners. Disputes can also potentially arise from past and future sales of real estate as well as annulment actions Taxation law risk brought by shareholders in connection with resolutions of National taxation systems are subject to ongoing change the Ordinary General Meeting or review of the exchange on the target markets of the CA Immo Group. Working ratio applied in the merger of CA Immo International AG with international consultants, the company monitors all and CA Immo. At present, however, no lawsuits or arbi- relevant debates and decisions taken by national legisla- tration proceedings which could have a material influ- tors. Despite this, short- and long-term tax expenditure ence on the economic situation of the company are pend- linked to changing legal frameworks poses a constant risk ing or foreseeable. Almost all pending actions relate to to revenue. Sufficient financial provisions have been conventional operational business activity. Accordingly made for established risks. the partner of a Russian project has signalized to file an arbitrational lawsuit (value of the claim € 48.0 m). Suffi- cient provisions are formed as necessary: as at 31 Decem- ber 2010, provisions of approximately € 1.8 m had been allocated. In order to minimise legal risks, CA Immo works with lawyers on its relevant target markets, integrating them into decision-making processes at appropriate stages.

MANAGEMENT REPORT

THE INTERNAL MONITORING SYSTEM (IMS) which has been standardised across the Group. As part of a reorganisation process, CA Immo set up an Internal The internal monitoring system (IMS) is a conglomera- Auditing unit under the control of the full Management tion of systematically structured measures designed to Board to consolidate the internal monitoring system ensure compliance with guidelines and prevent errors; alongside the Risk Management division. Both units took the guidelines include both specific company rules up their assigned duties in business year 2010. On the (Group manual, allocation of responsibilities, authority to basis of annually compiled auditing plans, or in response sign, dual verification principle, regulations for release, to ad-hoc assessments performed as needs dictate, they etc.) as well as legal provisions. The objectives of the IMS now oversee compliance across the Group with legal are to preclude (preventive monitoring) and identify provisions, internal guidelines and rules of conduct. On (detective monitoring) errors in accounting and financial an operational level, the units review the functioning of reporting, thus enabling amendments or countermeasures (business) processes as regards possible risk and cost- to be introduced in good time. The operational divisions effectiveness and assess the potential for efficiency im- are involved to ensure a complete overview of the process provements. The internal auditing unit also supervises of financial reporting. CA Immo defines preventive moni- the observance of checking procedures by local manage- toring as those checks undertaken by responsible admin- ment teams and determines the dependability of opera- istrators as they carry out business processes prior to tional information as well as the effectiveness of the in- and/or within specific systems (e.g. accounting and con- ternal monitoring system. To achieve this, detailed report- solidation software). Detective monitoring refers in par- ing (EuroSox/SOX documentation) on specific processes ticular to controls carried out by responsible heads of and controls as well as accounting and financial reporting department or the head of finance and accounting on the is essential. Finally, the results of these assessments are basis of analyses derived from such systems. In accor- reported to the responsible executive boards as well as dance with the organisational structure of the CA Immo the full CA Immo Management Board. The Supervisory Group, responsibility for the implementation and super- Board is informed as to the auditing plan and the assess- vision of the internal monitoring system lies with the ment results at least once a year. Furthermore, the proper appropriate local management teams, i.e. the managing functioning of the risk management system is evaluated directors of the various subsidiaries are required to per- annually by the Group auditor, with the findings pre- form self-checks in order to assess and document compli- sented to the Management Board and the Supervisory ance with the monitoring measures making up the IMS, Board or its audit committee.

100 ANNUAL REPORT 2010 CONSOLIDATED FINANCIAL STATEMENTS

101

CONSOLIDATED FINANCIAL STATEMENTS CONTENT

CONSOLIDATED FINANCIAL STATEMENTS

A. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31.12.2010 104 B. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31.12.2010 105 C. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31.12.2010 106 D. CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR 2010 108 E. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31.12.2010 110 F. CONSOLIDATED SEGMENT REPORTING FOR THE YEAR ENDED 31.12.2010 112 G. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31.12.2010 116 1. General notes 116 1.1. Operating activities 116 1.2. Accounting principles 116 1.3. Scope of consolidation 116 1.4. Consolidation methods 120 1.5. Foreign currency translation 121 1.6. Accounting and measurement methods 122 1.6.1. First-time application of new and revised standards and interpretations influencing the consolidated financial statements 122 1.6.2. First-time application of new and revised standards and interpretations not influencing the consolidated financial statements 123 1.6.3. New and revised standards and interpretations that are not yet compulsory 124 1.6.4. Changes in recognition, accounting and measurement methods 125 1.6.5. Material discretionary decisions, assumptions and estimates 125 1.6.5.1. Material discretionary decisions 125 1.6.5.2. Material assumptions and estimates 126 1.6.6. Accounting and measurement methods in detail 129 2. NOTES TO THE CONSOLIDATED INCOME STATEMENT, CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED CASH FLOW STATEMENT 141 2.1. Consolidated income statement 141 2.1.1. Gross revenues and segment reporting 141 2.1.2. Rental income 142 2.1.3. Result from property transactions 142 2.1.4. Result from development services: 143 2.1.5. Operating result and other expenses directly related to properties 143 2.1.6. Economic result from the sale of long-term properties 144 2.1.7. Indirect expenditures 146 2.1.8. Capitalised services and changes to stock 147 2.1.9. Other operating income 148 2.1.10. Depreciation and amortisation 148 2.1.11. Reversal of write-down 149 2.1.12. Result from revaluation 149 2.1.13. Financing costs 150 2.1.14. Foreign currency gain/loss 151 2.1.15. Result from interest derivative transactions 151 2.1.16. Result from financial investments 152 2.1.17. Income from associated companies 153 2.1.18. Non-controlling interests held by limited partners 153 2.1.19. Net results from categories 154 2.1.20. Taxes on income and earnings 155 2.2. Other total comprehensive income 156 2.3. Statement of financial position 158 2.3.1. Long-term investment properties and office furniture, equipment and other assets 158 2.3.2. Intangible assets 159 2.3.3. Financial assets 160 2.3.4. Long-term receivables and other assets 161 2.3.5. Deferred tax assets 163 2.3.6. Assets held for sale and liabilities related thereto 165 2.3.6.1. Individual assets held for sale 165 2.3.6.2. Disposal groups 166 2.3.7. Properties intended for trading 167 2.3.8. Short-term receivables and other assets 168

102

CONSOLIDATED FINANCIAL STATEMENTS

2.3.9. Securities 171 2.3.10. Cash and cash equivalents 171 2.3.11. Shareholders' equity 171 2.3.12. Provisions 173 2.3.13. Bonds 175 2.3.13.1. Convertible bond 175 2.3.13.2. Other bonds 175 2.3.14. Financial liabilities 176 2.3.15. Other liabilities 178 2.4. Cash flow 179 2.4.1. Fund of cash and cash equivalents 179 2.4.2. Taxes paid 179 2.4.3. Cash flow from operating activities 180 2.4.4. Cash flow from investment activities 180 2.4.5. Cash flow from financing activities 180 2.5. Other information 181 2.5.1. Financial instruments 181 2.5.2. Financial risks 186 2.5.3. Other liabilities and contingent liabilities 190 2.5.4. Leases 190 2.5.5. Business relationships with related companies and parties 191 2.5.6. Net profit effect on the income statement of the settlement of transactions within the CA Immo Group and the CAINE Group 195 2.5.7. Capital management 196 2.5.8. Key figures per share 197 2.5.9. Payroll 198 2.5.10. Costs for the auditor 198 2.5.11. Events after the close of the business year 198 2.5.11.1. Company fusions after the close of the business year 198 2.5.11.2. Other events 199 DECLARATION OF THE MANAGING BOARD DUE TO SECTION 82 (4) OF THE AUSTRIAN STOCK EXCHANGE ACT 205 AUDITOR’S REPORT 206 FINANCIAL STATEMENTS OF CA IMMOBILIEN ANLAGEN AKTIENGESELLSCHAFT 208 STATEMENT OF FINANCIAL POSITION AS AT 31.12.2010 208 INCOME STATEMENT FOR THE YEAR ENDED 31.12.2010 210 OTHER INFORMATION 212 TABLES AND ANALYSES 213 I. CA IMMO SHARE 213 1. Review of share ratios 213 2. Development of share capital 214 II. PORTFOLIO ANALYSIS 215 1. Overall portfolio 215 2. Change of rental income (2010 vs. 2009) 215 3. Segment analysis – usable space by type of use (investment properties and properties intended for trading) 215 4. Segment analysis – rental incomes by main type of use (investment properties and properties intended for trading) 216 5. Largest tenants 216 6. Lease analysis based on effective rental income of the expiring lease contracts 216 7. Book values by property area and segments 217 III. BALANCE-SHEET AND INCOME ANALYSIS (5-YEAR COMPARISON) 218 1. Corporate Data /Key Figures 218 2. Consolidated Balance Sheet 219 3. Consolidated Income Statement 220 4. Like-for-like analysis of properties that were already core as at 31 december 2009 220 5. Cash flow statement 221 IV. General overview of properties 222

103

CONSOLIDATED FINANCIAL STATEMENTS A. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31.12.2010

€ 1,000 Notes 2010 2009

Rental income 2.1.2. 164,333.9 176,974.5 Income from the sale of properties intended for trading 2.1.3. 115,657.2 78,025.5 Gross revenues from development services 2.1.4. 2,763.8 4,518.9 Operating costs passed on to tenants 2.1.5. 30,204.0 29,133.7 Gross revenues 312,958.9 288,652.6 Operating expenses 2.1.5. – 35,547.2 – 35,015.9 Other expenses directly related to properties 2.1.5. – 26,196.7 – 19,696.1 Book value of properties intended for trading1) 2.1.3. – 85,640.4 – 68,161.2 Expenditures on development services 2.1.4. – 625.2 – 1,756.0 Net operating income 164,949.4 164,023.4 NOI as a % of the gross revenues 52.7% 56.8% Profit from the sale of long-term properties 206,745.7 357,308.8 Book value of long-term properties – 203,330.4 – 348,091.1 Result from the sale of long-term properties 2.1.6. 3,415.3 9,217.7

Indirect expenditures 2.1.7. – 47,354.5 – 51,712.1 Capitalised services 2.1.8. 11,856.5 12,148.8 Other operating income 2.1.9. 6,547.9 8,263.4 EBITDA 139,414.6 141,941.2 EBITDA as a % of the gross revenues 44.5% 49.2% Depreciation and amortisation of long-term properties – 1,566.7 – 1,837.3 Impairment of properties intended for trading – 2,155.8 – 8,555.5 Depreciation and amortisation 2.1.10. – 3,722.5 – 10,392.8 Reversal of write-down of properties intended for trading 2.1.11. 926.1 544.5

Revaluation gain 117,969.5 92,517.1 Revaluation loss – 71,253.4 – 221,603.6 Result from revaluation 2.1.12. 46,716.1 – 129,086.5 Operating result (EBIT) 183,334.3 3,006.4 EBIT as a % of the gross revenues 58.6% 1.0% Financing costs 2.1.13. – 117,446.3 – 108,430.2 Foreign currency gain/loss 2.1.14. 749.3 2,573.5 Result from interest derivative transactions 2.1.15. – 4,445.9 – 30,123.2 Result from financial investments 2.1.16. 14,417.9 8,821.7 Impairment of financial investments – 765.8 – 3,121.7 Income from associated companies 2.1.17. – 328.3 – 7,315.7 Non-controlling interests held by limited partners 2.1.18. 244.2 67.3 Financial result 2.1.19. – 107,574.9 – 137,528.3 Net result before taxes (EBT) 75,759.4 – 134,521.9 Income tax 2.1.20. – 31,940.7 – 198.0 Consolidated net income 43,818.7 – 134,719.9

thereof attributable to non-controlling interests – 1,596.6 – 57,804.9 thereof attributable to the owners of the parent 45,415.3 – 76,915.0

Earnings per share in € (undiluted) € 0.52 € – 0.89 Earnings per share in € (diluted) € 0.52 € – 0.89

1) The book value of properties intended for trading comprises the book value of stock properties sold, own service costs and other development costs relating to properties intended for trading but not change to stock.

104

CONSOLIDATED FINANCIAL STATEMENTS B. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31.12.2010

€ 1,000 Notes 2010 2009

Consolidated net income 43,818.7 – 134,719.9

Other comprehensive income Valuation cash flow hedges – 18,007.8 – 24,630.6 Raclassification cash flow hedges 378.1 19,090.1 Other comprehensive income of associated companies – 110.0 433.9 Exchange rate differences in equity – 35.7 – 0.1 Income tax related to other comprehensive income 2,531.9 – 1,628.4 Other comprehensive income for the year, net of tax 2.2. – 15,243.5 – 6,735.1 Total comprehensive income for the year 28,575.2 – 141,455.0

thereof: attributable to non-controlling interests – 2,368.3 – 58,627.5 thereof: attributable to the owners of the parent 30,943.5 – 82,827.5

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

105

CONSOLIDATED FINANCIAL STATEMENTS C. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31.12.2010

€ 1,000 Notes 31.12.2010 31.12.2009

ASSETS Investment properties 2.3.1. 2,716,211.2 2,409,589.1 Investment properties under development 2.3.1. 790,582.0 962,459.0 Own used properties 2.3.1. 13,574.7 14,247.9 Prepayments made on properties 2.3.1. 0.0 543.6 Office furniture, equipment and other assets 2.3.1. 1,638.3 1,939.4 Intangible assets 2.3.2. 31,467.6 39,529.1 Prepayments made on investments in properties 2.3.3. 136,200.0 200.0 Investments in associated companies 2.3.3. 37,096.0 38,242.1 Loans to joint ventures 2.3.3. 11,142.4 24,983.4 Loans to associated companies 2.3.3. 14,550.9 11,867.8 Other loans 2.3.3. 0.0 40.0 Other financial assets 2.3.3. 8.6 7.3 Receivables and other assets 2.3.4. 15,373.4 0.0 Deferred tax assets 2.3.5. 14,133.3 24,606.3 Long-term assets 3,781,978.4 3,528,255.0 Long-term assets as a % of statement of financial position total 86.4% 81.8%

Assets held for sale 2.3.6. 46,508.9 6,020.1 Property intended for trading 2.3.7. 45,339.0 122,902.4 Receivables from joint ventures 2.3.8. 38,635.9 40,034.4 Receivables and other assets 2.3.8. 108,383.3 109,290.6 Securities 2.3.9. 3,853.5 6,948.2 Cash and cash equivalents 2.3.10. 354,763.8 497,199.3 Short-term assets 597,484.4 782,395.0 Total assets 4,379,462.8 4,310,650.0

106

CONSOLIDATED FINANCIAL STATEMENTS

€ 1,000 Notes 31.12.2010 31.12.2009

LIABILITIES AND SHAREHOLDERS' EQUITY Share capital 638,713.6 634,370.0 Capital reserves 1,061,464.1 1,013,988.3 Retained earnings (incl. valuation result from hedging and other reserves) – 58,409.8 – 89,353.3 Non-controlling interests 18,170.6 170,155.1 Shareholders' equity 2.3.11. 1,659,938.5 1,729,160.1 shareholders' equity as a % of statement of financial position total 37.9% 40.1%

Non-controlling interests held by limited partners 1,996.8 2,437.6 Provisions 2.3.12. 6,238.6 522.4 Bonds 2.3.13. 475,564.8 472,525.3 Financial liabilities 2.3.14. 1,412,741.3 1,379,668.4 Trade creditors 37,103.7 40,815.8 Other liabilities 2.3.15. 191,301.5 173,823.1 Deferred tax liabilities 2.3.5. 116,157.5 129,788.0 Long-term liabilities 2,241,104.2 2,199,580.6

Tax provisions 2.3.12. 59,893.5 82,292.0 Provisions 2.3.12. 58,809.3 57,082.6 Financial liabilities 2.3.14. 236,910.3 124,276.3 Liabilities to joint ventures 2.5.5. 1,670.8 15,225.9 Trade creditors 25,025.0 24,901.0 Other liabilities 2.3.15. 90,257.6 78,131.5 Liabilities relating to properties held for sale 2.3.6.2. 5,853.6 0.0 Short-term liabilities 478,420.1 381,909.3 Total liabilities and shareholders' equity 4,379,462.8 4,310,650.0

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

107

CONSOLIDATED FINANCIAL STATEMENTS D. CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR 2010

€ 1,000 Notes 2010 2009

Cash flow from operating activities Net result before taxes 75,759.4 – 134,521.9 Revaluation loss 2.1.12. – 46,716.1 129,086.5 Depreciation and amortisation 2.1.10. 3,722.5 10,392.8 Reversal of write-down 2.1.11. – 926.1 – 544.5 Income from the sale of long-term properties (incl. multi-component transactions) and office equipment 2.1.6. – 11,100.8 – 14,400.2 Loss from asset disposal (incl. multi-component transactions) and office equipment 2.1.6. 7,676.7 5,197.8 Taxes paid excl. for the sale of properties 2.4.2. – 15,041.7 – 12,219.7 Interest income/expense 103,028.4 99,608.5 Foreign currency gain/loss 2.1.14. – 749.3 – 2,573.5 Effect on valuation of interest swaps and caps 2.1.15. 4,445.9 30,123.2 Impairment of financial investments 2.1.19. 765.8 3,121.7 Result from investments in associated companies 84.1 7,248.4 Operating cash flow 120,948.8 120,519.1

Property intended for trading 2.3.7. 77,673.2 40,277.2 Receivables and other assets 2.3.4., 2.3.8. – 19,880.8 – 56,067.6 Trade creditors 9,624.0 13,553.0 Provisions 2.3.12. – 346.9 2,176.0 Other liabilities 2.3.15. – 15,985.4 10,300.5 Cash flow from change in net current assets 51,084.1 10,239.1

Cash flow from operating activities 2.4.3. 172,032.9 130,758.2

Cash flow from investment activities Acquisition of and investment in properties 2.4.4. – 300,439.6 – 260,283.4 Acquisition of property companies, less cash and cash equivalents in the

amount of € 2,206.2 K (2009: € 35.0 K) 2.4.4. – 1,316.5 – 1,257.2 Acquisition of office equipment and intangible assets 2.3.1. – 670.5 – 578.8 Prepayments made on properties 2.3.1. 0.0 – 543.6 Prepayments made on investments in properties 2.3.3. – 136,000.0 – 110.4 Acquisition of financial assets 2.3.3. – 7,062.0 – 9,296.0 Disposal of short term securities 2.3.9. 6,013.8 3,438.1 Purchase of own shares (CA Immobilien Anlagen AG) 0.0 14,268.4 Purchase of shares in CA Immo International AG incl. costs of capital increase 2.4.4. – 99,044.9 – 1,722.3 Disposal of long-term properties and other assets 2.1.6. 216,198.7 325,427.7 Disposal of companies with long-term properties, less cash and cash

equivalents in the amount of € 366.0 K (2009: € 49.2 K) 2.1.6. – 362.1 – 3,731.2 Taxes paid relating to the sale of long-term properties 2.4.2. – 29,563.3 0.0 Dividend payments of associated companies and securities 857.0 997.1 Interest received from financial investments 7,663.1 6,158.9 Cash flow from investment activities 2.4.4. – 343,726.3 72,767.3

carry-forward – 171,693.4 203,525.5

108

CONSOLIDATED FINANCIAL STATEMENTS

€ 1,000 Notes 2010 2009 carry-forward – 171,693.4 203,525.5

Cash flow from financing activities Cash inflow from financing 280,290.5 132,770.1 Cash inflow from bond issue 0.0 148,725.5 Cash inflow from convertible bond issue 0.0 132,606.0 Cash inflow from non-controlling interests 1,248.0 8,798.7 Cash inflow from related companies 540.0 1,435.5 Dividend payments of subsidiaries to non-controlling interests – 164.1 – 455.1 Repayment of derivative instruments 0.0 – 1,952.4 Repayment of loans – 138,831.0 – 347,703.3 Interest paid – 113,981.3 – 100,726.6 Cash flow from financing activities 2.4.5. 29,102.1 – 26,501.6

Net change in cash and cash equivalents – 142,591.3 177,023.9

Cash and cash equivalents as at 1.1. 497,199.3 321,380.3 Changes in the value of foreign currency 155.8 – 1,204.9 Net change in cash and cash equivalents – 142,591.3 177,023.9 Cash and cash equivalents as at 31.12. 2.3.10. 354,763.8 497,199.3

Please refer to Point 2.4. for further details on the cash flow statement. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

109

CONSOLIDATED FINANCIAL STATEMENTS E. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31.12.2010

€ 1,000 Share capital Capital reserves Reserves for own shares

As at 1.1.2009 634,370.0 1,006,970.8 – 11,861.3 Total comprehensive income for the period 0.0 0.0 0.0 Dividend payments 0.0 0.0 0.0 Sale of own shares 0.0 409.2 11,861.3 Purchase of shares in CAIIAG 3) 0.0 3,146.5 0.0 Issue of convertible bond 0.0 3,460.1 0.0 Payments from non-controlling companies 0.0 0.0 0.0 Purchase and disposal of non-controlling interests 0.0 1.7 0.0 As at 31.12.2009 634,370.0 1,013,988.3 0.0

Total comprehensive income for the period 0.0 0.0 0.0 Purchase of shares in CAIIAG 3) 0.0 41,428.9 0.0 Capital increase as the result of the merger of CA Immo International AG 4,343.6 6,046.7 0.0 Payments from non-controlling companies and purchase of non- contolling interests 0.0 0.2 0.0 As at 31.12.2010 638,713.6 1,061,464.1 0.0

1) Reserves from associates comprise the changes in equity with no effect on the income statement of one company consolidated at equity, in which the valuation of cash flow hedges and the change in reserves from foreign exchange gains/losses are included. 2) Company in Switzerland with functional currency CHF 3) CAIIAG = CA Immo International AG, Vienna

110

CONSOLIDATED FINANCIAL STATEMENTS

Retained Valuation result Reserves from Reserves from Shares held by the Non-controlling Shareholders' earnings (hedging) associates1) foreign shareholders of interests equity (total) currency the translation2) parent company

45,824.5 – 52,133.2 – 219.2 2.1 1,622,953.7 231,700.4 1,854,654.1 – 76,915.0 – 6,158.4 246.0 – 0.1 – 82,827.5 – 58,627.5 – 141,455.0 0.0 0.0 0.0 0.0 0.0 – 36.4 – 36.4 0.0 0.0 0.0 0.0 12,270.5 0.0 12,270.5 0.0 0.0 0.0 0.0 3,146.5 – 4,868.6 – 1,722.1 0.0 0.0 0.0 0.0 3,460.1 0.0 3,460.1 0.0 0.0 0.0 0.0 0.0 8,798.7 8,798.7 0.0 0.0 0.0 0.0 1.7 – 6,811.5 – 6,809.8 – 31,090.5 – 58,291.6 26.8 2.0 1,559,005.0 170,155.1 1,729,160.1

45,415.3 – 14,424.8 – 11.3 – 35.7 30,943.5 – 2,368.3 28,575.2 0.0 0.0 0.0 0.0 41,428.9 – 140,463.1 – 99,034.2

0.0 0.0 0.0 0.0 10,390.3 – 10,400.9 – 10.6

0.0 0.0 0.0 0.0 0.2 1,247.8 1,248.0 14,324.8 – 72,716.4 15.5 – 33.7 1,641,767.9 18,170.6 1,659,938.5

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

111

CONSOLIDATED FINANCIAL STATEMENTS F. CONSOLIDATED SEGMENT REPORTING FOR THE YEAR ENDED 31.12.2010

Segmentation by regions 2010 € 1,000 Austria Germany1) Eastern/South Total East Europe

Rental income 39,049.0 79,760.3 45,524.7 164,333.9 Income from the sale of properties intended for trading 0.0 115,657.2 0.0 115,657.2 Gross revenues from development services 0.0 2,763.8 0.0 2,763.8 Operating costs passed on to tenants 7,995.7 9,369.6 12,838.7 30,204.0 Gross revenues 47,044.7 207,550.8 58,363.4 312,958.9 Operating expenses – 10,114.6 – 9,708.3 – 15,724.3 – 35,547.2 Other expenses directly related to properties – 4,265.6 – 15,605.1 – 6,325.9 – 26,196.7 Book value of properties intended for trading 0.0 – 85,640.4 0.0 – 85,640.4 Expenditures on development services 0.0 – 625.2 0.0 – 625.2 Net operating income 32,664.5 95,971.8 36,313.2 164,949.4 NOI as a % of the gross revenues 69.4% 46.2% 62.2% 52.7% Result from the sale of long-term properties 1,014.3 2,401.0 0.0 3,415.3 Indirect expenditures – 7,556.1 – 28,529.5 – 11,268.9 – 47,354.5 Capitalised services 0.0 11,856.5 0.0 11,856.5 Other operating income 422.4 3,801.3 2,324.2 6,547.9 EBITDA 26,545.1 85,501.0 27,368.4 139,414.6 EBITDA as a % of the gross revenues 56.4% 41.2% 46.9% 44.5% Depreciation and amortisation of long-term properties – 867.2 – 629.6 – 69.9 – 1,566.8 Impairment of properties intended for trading 0.0 – 2,151.6 – 4.2 – 2,155.7 Reversal of write-down of properties intended for trading 0.0 926.1 0.0 926.1 Result from revaluation 18,419.4 40,674.6 – 12,377.9 46,716.1 Operating result (EBIT) 44,097.4 124,320.5 14,916.4 183,334.3 EBIT as a % of the gross revenues 93.7% 59.9% 25.6% 58.6% Financing costs2) – 22,579.2 – 62,302.7 – 32,564.4 – 117,446.3 Foreign currency gain/loss – 2.2 1,247.4 – 495.9 749.3 Result from interest derivative transactions – 929.5 – 3,347.3 – 169.1 – 4,445.9 Result from financial investments2) 7,224.0 2,643.3 4,550.6 14,417.9 Impairment of financial investments 0.0 0.0 – 765.8 – 765.8 Income from associated companies 0.0 0.0 – 328.3 – 328.3 Non-controlling interests held by limited partners 0.0 244.2 0.0 244.2 Net result before taxes (EBT) 27,810.5 62,805.5 – 14,856.6 75,759.4 Income tax 1,350.4 – 25,584.3 – 7,706.8 – 31,940.7 Consolidated net income 29,160.8 37,221.2 – 22,563.4 43,818.7

31.12.2010 Segment properties3) 735,745.5 2,124,694.6 705,266.9 3,565,707.0 Assets held for sale 336.0 41,160.0 5,012.9 46,508.9 Other segment assets 40,595.7 367,656.9 307,765.0 716,017.6 Investments in associated companies 0.0 22.3 37,073.7 37,096.0 Deferred tax assets 0.0 14,132.4 0.9 14,133.3 Total assets 776,677.2 2,547,666.1 1,055,119.4 4,379,462.8 Segment liabilities 377,614.6 1,513,429.4 652,429.3 2,543,473.3 Deferred tax liabilities incl. tax provisions 19,019.3 123,771.9 33,259.7 176,051.0 Segment debts 396,633.9 1,637,201.3 685,689.0 2,719,524.2 Capital expenditures4) 15,394.1 253,931.6 57,341.9 326,667.5 Employees5) 45 175 97 317

112

CONSOLIDATED FINANCIAL STATEMENTS

2009 Austria Germany1) Eastern/South Total East Europe 46,161.7 90,538.9 40,273.9 176,974.5 0.0 78,025.5 0.0 78,025.5 0.0 4,518.9 0.0 4,518.9 6,661.5 11,394.5 11,077.7 29,133.7 52,823.2 184,477.8 51,351.6 288,652.6 – 8,347.3 – 13,223.3 – 13,445.3 – 35,015.9 – 4,981.2 – 11,499.0 – 3,215.9 – 19,696.1 0.0 – 68,161.2 0.0 – 68,161.2 0.0 – 1,756.0 0.0 – 1,756.0 39,494.7 89,838.3 34,690.4 164,023.4 74.8% 48.7% 67.6% 56.8% 3,042.4 6,259.7 – 84.3 9,217.7 – 6,734.8 – 33,720.5 – 11,256.8 – 51,712.1 0.0 12,148.8 0.0 12,148.8 1,578.7 5,094.8 1,589.9 8,263.4 37,381.0 79,621.1 24,939.2 141,941.2

70.8% 43.2% 48.6% 49.2% – 870.0 – 890.9 – 76.4 – 1,837.3

0.0 – 8,534.2 – 21.3 – 8,555.5

0.0 544.5 0.0 544.5 – 15,297.9 38,165.2 – 151,953.8 – 129,086.5 21,213.1 108,905.7 – 127,112.3 3,006.4 40.2% 59.0% – 1.0%

– 28,472.0 – 61,808.0 – 18,150.2 – 108,430.2

0.1 168.6 2,404.8 2,573.5 – 9,209.8 – 18,675.2 – 2,238.2 – 30,123.2 357.9 2,895.7 5,568.1 8,821.7

0.0 0.0 – 3,121.7 – 3,121.7

0.0 13.2 – 7,328.9 – 7,315.7 0.0 67.3 0.0 67.3 – 16,110.7 31,567.3 – 149,978.5 – 134,521.9

2,697.7 – 18,345.2 15,449.5 – 198.0

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED – 13,413.0 13,222.1 – 134,529.0 – 134,719.9

31.12.2009 1) Incl. a property in Switzerland. 737,149.6 2,098,617.4 673,975.0 3,509,742.0 2) Financing costs and result from financial investments are allocated to 1,975.1 4,045.0 0.0 6,020.1 the segments after eliminations of group interest expenses/income in order 303,582.6 263,626.1 164,830.8 732,039.5 to make it comparable with consolidated statement of comprehensive income. Since financing costs and result from financial investments were 0.0 22.2 38,219.9 38,242.1 allocated to the segments before consolidation entries in the annual report 0.0 24,580.0 26.3 24,606.3 2009, the prior year figures were amended. 1,042,707.3 2,390,890.7 877,052.0 4,310,650.0 3) Segment properties include investment properties, investment proper- 614,452.8 1,325,239.1 429,718.0 2,369,409.9 ties under development, own used properties, properties intended for trading and prepayments made on properties. 27,881.0 161,518.1 22,680.9 212,080.0 4) Capital expenditures include all acquisitions of properties (long-term 642,333.8 1,486,757.2 452,398.9 2,581,489.9 and short-term), office furniture, equipment, other assets and intangible 8,227.7 175,734.5 90,905.3 274,867.5 assets; out of which € 7,383.5K (31.12.2009: € 24.477,4K) in properties intended for trading. 49 193 90 332 5) Situation as at 31.12.2010 (31.12.2009), employees in companies consolidated on a proportional basis are included at 100%.

113

CONSOLIDATED FINANCIAL STATEMENTS

Segmentation by sectors 2010 € 1,000 Income Trading Development1) Total producing

Rental income 147,062.3 7,792.3 9,479.3 164,333.9 Income from the sale of properties intended for trading 0.0 115,657.2 0.0 115,657.2 Gross revenues from development services 0.0 0.0 2,763.8 2,763.8 Operating costs passed on to tenants 28,141.9 1,055.1 1,007.0 30,204.0 Gross revenues 175,204.1 124,504.6 13,250.2 312,958.9 Operating expenses – 33,144.1 – 977.3 – 1,425.8 – 35,547.2 Other expenses directly related to properties – 17,962.0 – 2,020.2 – 6,214.5 – 26,196.7 Book value of properties intended for trading 0.0 – 85,640.4 0.0 – 85,640.4 Expenditures on development services 0.0 0.0 – 625.2 – 625.2 Net operating income 124,098.0 35,866.7 4,984.7 164,949.4 NOI as a % of the gross revenues 70.8% 28.8% 37.6% 52.7% Result from the sale of long-term properties 1,120.2 0.0 2,295.1 3,415.3 Indirect expenditures – 18,876.5 – 1,830.0 – 26,648.0 – 47,354.5 Capitalised services 237.0 1,083.6 10,535.9 11,856.5 Other operating income 3,159.4 567.1 2,821.4 6,547.9 EBITDA 109,738.1 35,687.4 – 6,010.9 139,414.6 EBITDA as a % of the gross revenues 62.6% 28.7% – 44.5% Depreciation and amortisation of long-term properties – 1,059.9 0.0 – 506.9 – 1,566.8 Impairment of properties intended for trading 0.0 – 2,155.7 0.0 – 2,155.7 Reversal of write-down of propertiesintended for trading 0.0 926.1 0.0 926.1 Result from revaluation 774.1 0.0 45,942.0 46,716.1 Operating result (EBIT) 109,452.3 34,457.8 39,424.2 183,334.3 EBIT as a % of the gross revenues 62.5% 27.7% – 58.6% Financing costs2) – 90,305.5 – 347.9 – 26,792.9 – 117,446.3 Foreign currency gain/loss – 504.6 24.5 1,229.4 749.3 Result from interest derivative transactions – 2,435.0 0.0 – 2,010.9 – 4,445.9 Result from financial investments2) 12,331.6 140.6 1,945.7 14,417.9 Impairment of financial investments 0.0 0.0 – 765.8 – 765.8 Income from associated companies 0.0 0.0 – 328.3 – 328.3 Non-controlling interests held by limited partners 131.0 140.8 – 27.6 244.2 Net result before taxes (EBT) 28,669.8 34,415.8 12,673.8 75,759.4 Income tax – 11,807.5 – 4,750.5 – 15,382.7 – 31,940.7 Consolidated net income 16,862.3 29,665.3 – 2,708.8 43,818.7

31.12.2010 Segment properties3) 2,729,785.9 45,339.1 790,582.0 3,565,707.0 Assets held for sale 336.0 1,250.0 44,922.9 46,508.9 Other segment assets 396,947.6 13,436.3 305,633.8 716,017.6 Investments in associated companies 0.0 0.0 37,096.0 37,096.0 Deferred tax assets 2,129.9 763.0 11,240.5 14,133.3 Total assets 3,129,199.4 60,788.3 1,189,475.2 4,379,462.8 Segment liabilities 1,799,018.9 29,557.2 714,897.2 2,543,473.3 Deferred tax liabilities incl. tax provisions 58,296.3 7,980.0 109,774.7 176,051.0 Segment debts 1,857,315.2 37,537.2 824,671.8 2,719,524.2 Capital expenditures4) 68,308.3 7,383.5 250,975.7 326,667.5

114

CONSOLIDATED FINANCIAL STATEMENTS

2009 Income Trading Development1) Total

producing

155,596.2 10,425.5 10,952.8 176,974.5 0.0 78,025.5 0.0 78,025.5

0.0 0.0 4,518.9 4,518.9 24,515.7 2,209.8 2,408.2 29,133.7

180,111.9 90,660.8 17,879.9 288,652.6 – 29,490.8 – 2,468.0 – 3,057.1 – 35,015.9 – 13,157.9 – 296.6 – 6,241.6 – 19,696.1 0.0 – 68,161.2 0.0 – 68,161.2 0.0 0.0 – 1,756.0 – 1,756.0 137,463.2 19,735.0 6,825.2 164,023.4 76.3% 21.8% 38.2% 56.8% 306.8 0.0 8,910.9 9,217.7 – 17,570.7 – 3,042.4 – 31,099.0 – 51,712.1 0.0 914.6 11,234.2 12,148.8 4,263.9 1,470.4 2,529.1 8,263.4 124,463.2 19,077.6 – 1,599.6 141,941.2

69.1% 21.0% – 49.2% – 1,229.9 0.0 – 607.4 – 1,837.3

0.0 – 8,555.5 0.0 – 8,555.5 0.0 544.5 0.0 544.5 – 110,175.3 0.0 – 18,911.2 – 129,086.5 13,058.0 11,066.6 – 21,118.2 3,006.4 7.2% 12.2% – 1.0% – 77,029.8 – 93.6 – 31,306.8 – 108,430.2 – 63.7 – 0.1 2,637.3 2,573.5 – 16,310.4 0.0 – 13,812.8 – 30,123.2 5,056.6 296.7 3,468.4 8,821.7 0.0 0.0 – 3,121.7 – 3,121.7 0.0 0.0 – 7,315.7 – 7,315.7 Income and expenses until completion of properties – 29.2 58.8 37.7 67.3 under construction are allocated to the segment “Devel- – 75,318.5 11,328.4 – 70,531.8 – 134,521.9 opment”. Assets and liabilities of properties under con- 10,073.9 – 3,865.7 – 6,406.2 – 198.0 struction are solely allocated to the segment “Income – 65,244.6 7,462.7 – 76,938.0 – 134,719.9 producing”. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

31.12.2009 1) Incl. a property in Switzerland. 2,424,380.5 122,902.4 962,459.1 3,509,742.0 2) Financing costs and result from financial investments are allocated to the segments after eliminations of group interest expenses/income in order 2,155.0 0.0 3,865.1 6,020.1 to make it comparable with consolidated statement of comprehensive 484,159.3 10,189.4 237,690.8 732,039.5 income. Since financing costs and result from financial investments were 0.0 0.0 38,242.1 38,242.1 allocated to the segments before consolidation entries in the annual report 4,155.9 987.3 19,463.1 24,606.3 2009, the prior year figures were amended. 3) Segment properties include investment properties, investment properties 2,914,850.7 134,079.1 1,261,720.2 4,310,650.0 under development, own used properties, properties intended for trading 1,763,643.6 44,133.1 561,633.2 2,369,409.9 and prepayments made on properties. 56,858.7 17,609.9 137,611.4 212,080.0 4) Capital expenditures include all acquisitions of properties (long-term and short-term), office furniture, equipment, other assets and intangible 1,820,502.3 61,743.0 699,244.6 2,581,489.9 assets; out of which € 7,383.5K (31.12.2009: € 24.477,4K) in properties 20,808.7 24,477.4 229,581.4 274,867.5 intended for trading.

115

CONSOLIDATED FINANCIAL STATEMENTS

G. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31.12.2010

1. GENERAL NOTES

1.1. Operating activities

CA Immobilien Anlagen Aktiengesellschaft, together with its subsidiaries (the "CA Immo Group"), is an internationally active property group. The parent company is CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), which has its head office at Mechelgasse 1, 1030 Vienna. As of 31.12.2010, the CA Immo Group owns property in all the countries encompassed by the scope of consolidation (see Annex I), except the Netherlands and Luxembourg.

1.2. Accounting principles

The consolidated financial statements of CA Immo AG were prepared in accordance with the provisions of the Inter- national Financial Reporting Standards (IFRS), to the extent that these standards are applicable to companies within the European Union.

The reporting date of all the companies is 31.12.2010. At the time the statements were prepared, published figures were not available for the listed company UBM Realitätenentwicklung AG, Vienna, so that the consolidated financial statements contain the figures published by this company in its consolidated financial statements as of 30.6.2010.

The consolidated financial statements are presented in one thousand euros ("€K", rounded according to the commercial rounding method). The use of automatic data processing equipment may lead to rounding differences in the addition of rounded amounts and percentage rates.

1.3. Scope of consolidation

The companies included in the consolidated financial statements are indicated in Annex I to these statements.

Explanatory notes concerning the Vivico Group refer to the subgroup of Vivico Real Estate GmbH, Frankfurt am Main (or simply Frankfurt), which encompasses Vivico Real Estate GmbH and its subsidiaries (see Annex I).

The scope of consolidation changed as follows in business year 2010:

Full consolidation Proportional At equity consolidation

As at 1.1.2010 122 28 4 Acquisitions 1 4 0 New establishments 4 2 0 Liquidations – 3 – 4 0 Restructurings – 3 – 1 0 Sales 0– 2 0 As at 31.12.2010 121 27 4 thereof foreign companies 100 24 3

116

CONSOLIDATED FINANCIAL STATEMENTS

In business year 2010, the CA Immo Group acquired:

Company name/domicile Purpose Interest % Purchase price First-time € 1,000 consolidation date

Mainzer Hafen GmbH, Mainz Property development 50.0 12.5 1.3.2010 Congress Centrum Skyline Plaza Verwaltung GmbH, Hamburg both for development of a 50.0 12.5 30.6.2010 Congress Centrum Skyline Plaza GmbH & project in Frankfurt Co. KG, Hamburg 50.0 15.0 30.6.2010 Vivico Berlin Lietzenburgerstraße Acquisition of property Verwaltungs GmbH, Frankfurt 100.0 27.5 30.6.2010 Megapark o.o.d., Sofia Acquisition of property 35.01) 4,939.8 31.12.2010 Total purchase price 5,007.3

1) common control

The aggregate price in the amount of € 5,007.3K was paid in full.

In addition, the following companies were established and consolidated for the first time in business year 2010:

Company name/domicile Purpose Interest held in % Capital contributions € 1,000

CAII Projektbeteiligungs GmbH, Vienna Both holding companies, for the acquisition of a 100.0 17.5 CAII Projektmanagement GmbH, Vienna property company in Eastern Europe 100.0 35.0 Holding company for the acquisition of Europolis CA Immo CEE Beteiligungs GmbH, Vienna AG, Vienna 100.0 35.0 PBP IT-Services Sp.z.o.o., Warsaw Management company for a project in Poland 50.0 7.9 Vivico Berlin Lietzenburger Straße Company for the acquisition of a property GmbH & Co. KG, Frankfurt 100.0 5.0 Zollhafen Mainz GmbH & Co. KG, Mainz Development of investment property 50.11) 0.0 Total capital contributions 100.4

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED The joint venture interests in Lokhalle München Verwaltungsgesellschaft mbH & Co. KG, Munich, and Lokhalle Mün- chen GmbH, Munich, were sold. The aggregate selling price of these companies was € 4.0K and was paid in full.

An application for the initiation of insolvency proceedings was made against OOO Business Center Maslovka ("Mas- lov project"), Moscow. The companies OOO BBM, Moscow, OOO Business Center Maslovka, Moscow, Larico Limited, Nicosia, and Triastron Investments Limited, Nicosia, were therefore deconsolidated as of 30.6.2010. The CA Immo Group remains committed to the Maslov project and consequently neutralised the gain arising from the deconsolidation by way of a corresponding liability.

In business year 2010, CA Immo Office Park d.o.o., Belgrade, CA Immo Projekt d.o.o., Zagreb, and TC Investments Turda S.R.L, Bucharest, were wound up.

By way of a merger agreement of 27.9.2010, CA Immo International AG, Vienna, was merged with CA Immo AG effective 31.12.2009. The merger has no effect on profit or loss (see Point 2.3.11.).

117

CONSOLIDATED FINANCIAL STATEMENTS

The following additional mergers took place in 2010:

- omniCon Verwaltungs GmbH, Frankfurt, was absorbed by Vivico Real Estate GmbH, Frankfurt, - H1 Hotelentwicklungs GmbH, Vienna, was absorbed by CEE Hotel Management und Beteiligungs GmbH, Vienna, - CA Immobilien Anlagen Beteiligungs GmbH, Vienna, was absorbed by CA Immobilien Anlagen Aktiengesellschaft, Vienna.

The acquisition, disposal and deconsolidation of these companies affect the composition of the consolidated financial statements as follows (amounts as of the acquisition or deconsolidation date):

€ 1,000 Acquisition at Adjustment to Adjustment at Deconsolida- Total book values market values market values tions/sales

Properties 24,352.7 1,694.3 26,047.0 – 5,039.0 21,008.0 Other assets 308.9 0.0 308.9 – 450.6 – 141.7 Cash and cash equivalents 2,206.2 0.0 2,206.2 – 366.0 1,840.2 Deferred tax 484.1 – 484.1 0.0 0.0 0.0 Financial liabilities – 28,951.4 0.0 – 28,951.4 27,929.1 – 1,022.3 Provisions – 4.6 0.0 – 4.6 158.8 154.2 Other liabilities – 1,223.6 0.0 – 1,223.6 627.0 – 596.6 Receivables/payables of affiliated companies – 1,781.1 0.0 – 1,781.1 – 16,940.8 – 18,721.9 Net assets – 4,608.8 1,210.2 – 3,398.6 5,918.5 2,519.9

Gross revenues of the acquired companies in 2010 totalled € 0.0K from the time of acquisition (€ 0.0K from 1.1.2010), and the net income came to € – 1,480.6K (€ – 2,025.5K from 1.1.2010). The acquired companies are included in the consolidated statement of financial position with assets of € 27,549.0K and liabilities of € 31,469.1K as of 31.12.2010.

The proportionally consolidated companies are included in the consolidated financial statements with the following proportional values (at 50 % or in case of common control despite distractive shareholding at 51.1 %, 35 % or 33.3 %). The key items are:

€ 1,000 31.12.2010 31.12.2009

Properties as per IAS 40 264,732.6 194,293.9 Property intended for trading 17,983.1 19,748.6 Other short-term assets 29,106.4 44,609.7 Deferred tax assets 645.3 65.9 Total assets 312,467.4 258,718.1 Long-term liabilities 97,071.0 102,914.0 Short-term liabilities 103,213.8 47,653.9 Deferred tax liabilities 21,902.4 15,405.9 Total liabilities 222,187.2 165,973.8

118

CONSOLIDATED FINANCIAL STATEMENTS

€ 1,000 2010 2009

Rental income 8,189.0 7,463.1 Income from the sale of properties intended for trading 19,021.4 3,145.0 Result from revaluation 6,474.5 – 11,190.8 Other income 1,100.2 1,489.6 Other expenses incl. book value of assets disposed – 19,293.7 – 7,342.8 Operating result (EBIT) 15,491.4 – 6,435.9 Financial result – 4,472.9 – 4,364.3 Net income before taxes (EBT) 11,018.5 – 10,800.2 Income tax – 4,356.7 5,431.9 Net income 6,661.8 – 5,368.3

For the following companies, included in the consolidated financial statements at equity:

 Isargärten Thalkirchen GmbH & Co. KG, Grünwald  OAO Avielen AG, St. Petersburg  Soravia Center OÜ, Tallinn  UBM Realitätenentwicklung AG, Vienna

the following figures reflect their assets, liabilities, rental income and net income:

€ 1,000 31.12.2010 31.12.2009

Properties as per IAS 40 356,145.6 403,047.4 Other long-term assets 120,442.8 0.0 Short-term assets 166,358.5 166,799.8 Long-term liabilities 429,447.4 350,246.8 Short-term liabilities 72,659.0 92,324.5 Group's share in net assets 34,754.2 31,747.6

2010 2009

Rental income 162,236.7 236,749.8 FINANCIAL STATEMENTS CONSOLIDATED Net income 16,746.1 10,734.3 Group's share in net income 4,186.9 2,673.9

UBM Realitätenentwicklung AG is based on data as of 30.6. and income statement data from 1.7.2009 to 30.6.

Once the book value of the holder's interests in an associated company has decreased to zero, additional losses are recognised as a liability only to the extent that the holder has incurred legal or constructive obligations or made payments on behalf of the associated company. As of 31.12.2010, the accumulated total amount of unrecognised losses

from associated companies is € -196.3K.

119

CONSOLIDATED FINANCIAL STATEMENTS

1.4. Consolidation methods

All companies under the controlling influence of the parent company are fully consolidated in the consolidated financial statements. A company is first consolidated as of the time at which control passes to the parent. It is deconsolidated when the control lapses. All Group-internal transactions between companies belonging to the scope of full and proportional consolidation, and the relevant income and expenses, receivables and payables, as well as unrealised interim profits are eliminated in full (or pro rata in the case of proportional consolidation).

The first-time inclusion in the consolidated financial statements of a subsidiary that is not a business operation is done in accordance with the purchase method by allocating the acquisition costs to the revalued assets (especially properties) and liabilities of the subsidiary.

If an acquired company is a business operation, it is included in the consolidated financial statements as a subsidiary for the first time by the purchase method, by recognising its identifiable assets and liabilities at fair value. Costs associated with a business combination are to be recognised in profit or loss as they are incurred. A conditional consideration is to be measured at the fair value prevailing at the time of acquisition. Subsequent changes in such fair value are to be corrected by offsetting against the purchase costs, provided that the corrections are made within the 12-month measurement period. All other changes in the fair value of a conditional consideration are to be recognised in profit or loss.

Non-controlling interests are recognised according to the categorisation of the interest as either shareholders' equity or liability, namely under the non-controlling interests in shareholders' equity or under the non-controlling interests in liabilities. The interests of non-controlling shareholders are measured upon recognition at the relevant portion of the acquired company's identifiable net assets. When subsequently measured, the book value of the non-controlling interests is amortised according to the changes in shareholders' equity attributable to the non-controlling interests. The total comprehensive income is attributed to the non-controlling interests even if such interests are then recognised with a negative balance.

Changes in the parent's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The book values of the controlling and non-controlling interests are adjusted to reflect the changes in the relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the company.

Goodwill arises at the acquisition of a business operation from a comparison of the fair value of the consideration and the amount recognised for the non-controlling interests on the one hand, and the fair value of the acquired company's identifiable assets and liabilities (net assets) on the other. The amount exceeding the net assets is recognised as goodwill.

Joint ventures In the context of property rental and project development partnerships, the CA Immo Group forms joint ventures with one or several partner companies. Joint management of these ventures is established by contract. Interests in such jointly managed ventures are included proportionally in the consolidated financial statements of the CA Immo Group. The Group's interests in the assets, liabilities, income and expenses of jointly managed ventures are assigned to the relevant items of the consolidated financial statements.

Associated companies An associated company is one on which the Group exerts a significant influence and is neither a subsidiary nor an interest in a joint venture. A significant influence is the ability to contribute to the financial and business policy decisions of the company in which the interest is held. The influence does not, however, encompass either control or joint oversight of financial and business policy.

120

CONSOLIDATED FINANCIAL STATEMENTS

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost, including directly apportionable ancillary costs, as adjusted for post-acquisition changes in the Group’s share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the Group’s interest in that associate are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

1.5. Foreign currency translation

Business operations in foreign currency The individual Group companies record foreign currency transactions at the middle rate of exchange ruling on the day of the relevant transaction. Monetary assets and liabilities in foreign currency existing at the balance sheet date are translated into euros, the Group currency, at the rate of exchange ruling on that date. Any resulting foreign currency gains or losses are recognised in the income statement of the relevant business year.

Translation of individual financial statements denominated in foreign currency The Group currency is the euro (EUR).

Since the euro is also the functional currency of the companies in Eastern and South East Europe outside the Euro- pean Monetary Union and included in the consolidated financial statements, the financial statements prepared in foreign currency are translated in accordance with the temporal method. Under this method, investment property (including properties under development) as well as monetary assets and liabilities are translated at closing rates, whereas other non-monetary assets are translated at historical exchange rates. Items of the income statement are translated at the average exchange rates of the relevant reporting period. Any gains and losses resulting from foreign currency translation are recognised in the income statement.

The functional currency for the subsidiary in Switzerland is the Swiss franc (CHF). The figures in the statement of financial position are translated at the middle rate applying on the reporting date. Only the shareholders' equity is translated at historical rates. Items of the income statement are translated at the average exchange rates of the relevant reporting period. Gains and losses arising from application of the closing rate method are recognised in equity under the reserves from foreign currency translation.

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

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The foreign currency translation was based on the following rates of exchange:

Closing rate Closing rate Average exchange Average exchange rate rate 31.12.2010 31.12.2009 2010 2009

Bulgaria BGN 1.9558 1.9558 1.9558 1.9557 Croatia HRK 7.3800 7.3000 7.2985 7.3543 Poland PLN 3.9670 4.1225 4.0041 4.3475 Romania RON 4.2890 4.2250 4.2248 4.2438 Russia RUB 40.9000 43.4000 40.2238 44.3238 Switzerland CHF 1.2492 1.4876 1.3694 1.5112 Serbia RSD 105.5000 96.5000 103.5958 94.2500 Czech Republic CZK 25.0800 26.4000 25.2633 26.5179 Hungary HUF 278.0000 272.0000 276.7133 281.5375

CHF Selling 1.2556 1.4940 Buying 1.2428 1.4812

USD Selling 1.3441 1.4410 Buying 1.3341 1.4310

1.6. Accounting and measurement methods

All IASs, IFRSs and IFRIC and SIC Interpretations (existing standards, amendments to same and new standards) required to be applied in the European Union as of 31.12.2010 have been complied with in the preparation of the consolidated financial statements. The consolidated financial statements of the CA Immo Group are therefore consistent with the International Financial Reporting Standards.

1.6.1. First-time application of new and revised standards and interpretations influencing the consolidated financial statements The following standards and interpretations, already an integral part of EU law, were to be applied for the first time in business year 2010:

- Amendments to IFRS 3/IAS 27 (Business Combinations) These standards govern the method of accounting for company acquisitions. In particular, the scope of IFRS 3 and the accounting for step acquisitions have been revised. In addition, IFRS 3 (revised) grants an option to measure any non- controlling interest in the entity acquired either at fair value or at the non-controlling interest's proportionate share of the entity's net identifiable assets.

In the revised version of IAS 27, the IASB in particular amended the accounting provisions for transactions with non- controlling interests in a group. Transactions changing the ownership interest of a parent company in a subsidiary without the parent relinquishing control are to be recognised as equity transactions. The accounting rules concerning the loss of a controlling interest in a subsidiary have also been revised. The standard establishes how a gain on deconsolidation is to be calculated and how a retained non-controlling investment in a former subsidiary is to be measured. The revision of IFRS 3/IAS 27 does not have any effect on the consolidated financial statements of the CA Immo Group because transactions with non-controlling interests are already recognised as equity transactions. The revision of

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IFRS 3 does have an effect, however, on the acquisition of Europolis AG, Vienna, and will likewise affect future acquisitions because acquisition-related costs are to be recognised as expenses immediately upon being incurred.

- IFRIC 15 (Agreements for the Construction of Real Estate) Governs the accounting for property disposals in the event of a contract being brought about with the buyer before completion of the building works. In particular, this interpretation clarifies the conditions that trigger the application of either IAS 11 or IAS 18 and when the revenues from the construction are to be recognised.

The CA Immo Group has examined the existing forward purchase agreements and the agreements concerning the construction of apartments or houses according to the provisions of IFRIC 15. The agreements are formulated to safeguard the CA Immo Group's decision-making authority when developing the buildings. Since the agreements envisage that the significant risks and rewards of ownership are to be transferred as a general rule upon completion, the CA Immo Group, acting pursuant to IFRIC 15.18, applies IAS 18.14 for the purpose of recognising revenue arising from the sale of goods in these cases, and recognises revenue when the power of disposal (control) passes to the buyer.

1.6.2. First-time application of new and revised standards and interpretations not influencing the consolidated financial statements - Amendments to IAS 39 (Financial Instruments: Recognition and Measurement) The amendments clarify the accounting principles for hedging relationships. They concern the circumstances in which inflation risk can qualify as the hedged item in a hedging relationship, and also clarify issues relating to the hedging of one-sided risks.

- Amendments to IFRS 1 (First-time Adoption of International Financial Reporting Standards) Restructured version of IFRS 1, in which outdated transitional provisions were deleted and minor amendments were made to the text.

- Amendments to IFRS 2 (Shared-based Payments) The amendments clarify the scope of IFRS 2 and how an individual subsidiary in a group should account for group cash-settled share-based payment transactions in its own financial statements, by way of which the subsidiary receives goods or services but its parent or another entity in the group assumes the payment obligation.

- IFRC 12 (Service Concession Arrangements) Governs the accounting for arrangements whereby a government or other public sector body contracts with a private operator to fulfil the grantor’s sovereign duties. In performing the contract, the private operator uses infrastructure assets that remain at the disposal of the public sector body. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED - IFRIC 16 (Hedges of a Net Investment in a Foreign Operation) IFRIC 16 clarifies issues arising in connection with the hedging of the foreign currency exposure of a foreign operation.

- IFRIC 17 (Distributions of Non-cash Assets to Owners) Governs the accounting for distributions of non-cash assets to the owners of an entity.

- IFRIC 18 (Transfers of Assets from Customers) Governs the accounting for assets acquired by an entity from a customer, which the entity must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services.

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- (Various) improvements to IFRSs as of 2008 and 2009, in particular in the following standards:

IFRS 2 (Share-based Payment) Through the improvements to IFRSs, the IASB has clarified that, in addition to business combinations within the scope of IFRS 3, the formation of joint ventures and transactions under common control are also excluded from the scope of IFRS 2.

IAS 38 (Intangible Assets) The improvements to IFRSs amend IAS 38.36 to clarify that an intangible asset acquired in a business combination may be separable only together with a related contract, identifiable asset or liability.

IFRIC 9 (Reassessment of Embedded Derivatives) As part of the improvements to IFRSs, it was decided explicitly to exclude from the scope of IFRIC 9 not only contracts acquired in a business combination as defined in IFRS 3, but also contracts transferred in business combinations amongst entities or business operations under common control and on formation of a joint venture.

IFRIC 16 (Hedges of a Net Investment in a Foreign Operation) By amending IFRIC 16, the improvements to IFRSs remove a restriction that prevented hedging instruments from being held by a foreign operation that itself is being hedged.

1.6.3. New and revised standards and interpretations that are not yet compulsory The following amendments and new versions of standards and interpretations have been issued, but are not yet applicable as of the reporting date:

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Standard/interpretations Content Endorsement1)

IAS 24 Related parties disclosure 19.7.2010 IAS 32 Amendments to IAS 32: Classification of rights issues 23.12.2009 The amendments concern the classification of certain rights issues denominated to be applied for in a currency other than the issuer's functional currency. business years commencing after 1.2.2010 IFRIC 14 Prepayments of a minimum funding requirement 19.7.2010 IFRIC 19 Extinguishing financial liabilities with equity instruments 23.7.2010 IFRS 1 Amendment to IFRS 1: 30.6.2010 Limited exemptions relating to comparative information according to IFRS 7 for first-time adopters. IFRS 7 Notes: Transfer of financial assets scheduled for 2Q 2011 The amendments to IFRS 7 enlarge the disclosure requirements on transfers of financial assets. These amendments shall increase the transperency for transactions intending to transfer assets when the transferor retains risks from the financial asset. IFRS 9 Financial instruments: Classification and measurement postponed IFRS 9 reflects stage one of the IASB project on replacing IAS 39 and contains the classification and measurement of financial assets as defined in IAS 39. The standard is to be applied for business years commencing on or after 1.1.2013. In further stages the IASB will deal with the classification and measurement of financial liabilities, hedge relationships and derecognition. The application of stage one of IFRS 9 will affect the classification and measurement of CA Immo Group's financial assets. To present a comprehensive view of potential effects, CA Immo Group will quantify the effects only in connection with the other stages as soon as they are published. Improvements to IFRS (May scheduled for 1Q 2011 2010)

1) The standards and interpretations are to be applied to business years commencing on or after the effective date.

The forenamed new versions and interpretations are not being applied prematurely by the CA Immo Group. Excepting the anticipated amendments arising from IFRS 9, the standards and interpretations are currently thought unlikely to have a material impact on the presentation of the CA Immo Group's financial and earnings position. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED 1.6.4. Changes in recognition, accounting and measurement methods There are no changes as at 31.12.2010.

1.6.5. Material discretionary decisions, assumptions and estimates When preparing the consolidated financial statements, senior management is required to make discretionary decisions, assumptions and estimates that affect both the recognition and measurement of the assets, liabilities, income and expenses, and the information contained in the Notes. Future actual values can be at variance with the original assumptions.

1.6.5.1. Material discretionary decisions During the preparation of the consolidated financial statements, senior management made discretionary decisions concerning the application of accounting and measurement methods to the key items set forth below.

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Classification of properties The distinction made by the CA Immo Group between "investment properties" and "property intended for trading" is described below.

The "investment properties" category consists of investment properties and investment properties under development that are held neither for own use, nor for sale in the ordinary course of business, but to generate rental income and appreciate in value.

In contrast to the classification of properties according to IAS 40, properties are recognised as held or intended for trading if the property concerned is intended for sale in the ordinary course of business or under construction for subsequent sale in the ordinary course of business.

Business combinations The CA Immo Group acquires companies that hold property assets. At the time of acquisition, it must be determined whether only assets are being purchased or an entire business operation is being acquired. If an entire business operation is purchased, the acquisition encompasses not only properties and other assets and liabilities, but also an integrated company. In detail, the assessment is performed according to the following criteria:

- Number of properties and sites belonging to the subsidiary - Other major areas of activity acquired by way of the purchase, such as property or asset management, accounting etc. - Own employees within the acquired company for managing the properties

If the transaction bringing about the acquisition of a property company is not classified as a "business combination", the purchase encompasses only assets and liabilities. The acquired company's identifiable assets and liabilities are recognised at fair value. Goodwill is not recognised.

Recognition of revenues If a contract for the construction of a property is recognised as a construction contract, the income arising therefrom is recognised – in compliance with IAS 11 – in proportion to the services performed according to the stage of completion as of the reporting date. The stage of completion of an individual construction contract is established according to the ratio of contract costs incurred for work performed as of the reporting date to the estimated total contract costs as of the reporting date.

1.6.5.2. Material assumptions and estimates Taxes All companies with property holdings are, as a general rule, liable in the country concerned for income tax on both rental income and capital gains. Material discretionary decisions must be made concerning the amount of tax provisions that are to be formed. An examination must also be performed to establish the extent to which deferred tax assets are to be recognised.

Income from the disposal of investments in companies in Germany, Switzerland and Eastern/South East Europe is wholly or partially exempt from income tax subject to compliance with certain conditions. Even if it is intended to comply with the conditions, the full amount of deferred tax liabilities is recognised for the properties.

For the purposes of recognising tax provisions, estimates have to be made. An examination must also be performed to establish the extent to which deferred tax assets are to be recognised. The probability that deferred tax assets arising from temporal differences and losses carried forward can be offset against taxable profits is to be assessed. Uncertain- ties exist concerning the interpretation of complex tax regulations and as regards the amount and effective date of future taxable income. The impairment test applied to deferred tax assets depends on enterprise-specific forecasts concerning, among other things, the future earnings situation in the relevant Group company. In particular against the background of an existing web of diverse international alliances, differences between the actual results and the assump-

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tions on the one hand, and future changes to these assumptions on the other, can influence future tax expenses and refunds. The CA Immo Group forms appropriate provisions for probable charges arising from current tax audits by the relevant national revenue authorities.

Financial instruments The CA Immo Group uses interest rate swaps in order to counter the risk of interest rate fluctuations. For accounting purposes, the CA Immo Group apportions the interest rate swaps to one of two categories:

- Cash flow hedges: interest rate swaps held as a hedging instrument for the interest rate risk arising from variable interest payments. The hedging relationship between the instrument and the hedged item is documented when the hedge is undertaken and on an ongoing basis. - Fair value derivatives: interest rate swaps that do not satisfy the conditions of a cash flow hedge.

Interest rate swaps are recognised at fair value. The fair value is the value which the CA Immo Group would receive or pay upon liquidation of the deal on the reporting date. This value was determined by the bank with which the transaction was concluded.

The fair values are calculated by discounting the future cash flows from variable payments on the basis of generally recognised models of financial mathematics. The interest rates for discounting the future cash flows are estimated by referencing an observable market yield curve. The calculation is based on interbank middle rates.

Property valuation The relevant fair value of properties is established, if a value is not indicated by binding purchase agreements, largely by external independent experts applying recognised valuation methods. The external valuations are carried out generally in accordance with the standards defined by the Royal Institution of Chartered Surveyors (RICS). The RICS defines the fair value as the estimated amount for which a property could be exchanged on the valuation date, after a reasonable period on the market, between willing parties in an arm's length transaction in the normal course of business in which both the buyer and the seller act knowledgeably, prudently and without compulsion.

The valuation method applied by the expert in an individual case depends, in particular, on the property's stage of development and type of use.

Rented commercial properties, which constitute the largest portion of the CA Immo Group's portfolio, are valued largely by the investment method. In such cases, the fair values are based on capitalised rental income and discounted, expected future cash flows. Alongside the current contractual rents and lease expiration profile, the value appraiser in

this context establishes further parameters on the basis of a professional assessment including, in particular, the long- FINANCIAL STATEMENTS CONSOLIDATED term expected rental value (ERV) based on an estimate of the market rent for new and follow-on tenancies, and the applied discount factors (equivalent yield). In Austria and Germany there were only slight changes in equivalent yields. In Eastern/South East Europe most countries recorded a slight decline in equivalent yields. Poland experienced a par-

ticularly distinctive decline by about 0.5 % to 7.0 %. In Hungary yields for office property range between 7.2 % and 9.0 %

whereas they are at about 9.0 % in Romania, Serbia and Bulgaria. For the hotel properties held in Slovenia and the

Chech Republic yields exceeded 9.0 %.

For properties that currently have a high vacancy rate or short-term leases, the influence of the valuer's assumptions on the property value is greater than it is in the case of properties with rent cash flows that are secured by long-term contracts.

For properties under development and construction, the residual value method is applied. In this case, the fair value is based on the established market value upon completion, giving due consideration to the outstanding anticipated expenditure and the application of an imputed reasonable profit for the developer. Due regard is given to any risks in the future expected rents and/or the capitalisation/discount rates. The interest rates vary, in particular depending on

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the general market climate and the location and type of use. The nearer a project is to completion, the greater the portion of parameters that are based on actual or contractually fixed figures. It is likewise generally true that the influence exerted by the valuer's assumptions on the established property value is greater, the more distant the scheduled completion date.

Land reserves, consisting of land that is not earmarked for active development in the near future, are valued, depending on the property and the stage of development, on the basis of comparable transactions or by the liquidation value, cost or residual value method.

Around 96% of the properties in Germany and about 99% of the properties in Austria and Eastern/South East Europe were subject to an external valuation as of the reporting date 31.12.2010. The values for the other properties were established internally on the basis of the previous year's valuations or binding purchase agreements.

The crisis in the global financial system in recent years has triggered considerable uncertainty in the commercial property markets. For a certain period, prices and values have therefore been subject to significant fluctuation. In particular, restricted liquidity in the capital markets can make it more difficult to sell the properties in the short term.

Sensitivity analysis The property values established by external valuers depend on an abundance of parameters, some of which influence each other in a complex way. For the purposes of conducting a sensitivity analysis for entire sub-portfolios to establish the effect on the valuation of changes in a parameter, simplified assumptions must therefore be made in order to obtain revealing general results.

The table below, for the investment properties, illustrates the sensitivity of the fair value to a fictitious change in rental income (for the purposes of this model, defined as actual rents plus target rents for vacant premises). It is based on a portfolio that contains the 19 highest-value investment properties of the CA Immo Group, reflecting the make-up of the entire investment property portfolio.

Annual rental income in € m – 10% – 5% Initial rentals 5% 10%

Annual rental income 74.5 78.6 82.8 86.9 91.0 Fair values 1,209.6 1,240.4 1,273.0 1,306.0 1,337.8 Changes to initial value – 5.0% – 2.6% 0.0% 2.6% 5.1% Gross yield 1) 6.2% 6.3% 6.5% 6.7% 6.8%

1) here defined as: gross annual rental income (actual rents plus target rents for vacant premises) / fair values

The scenarios show that a change in the gross rental income has a disproportionate effect on the fair values. The probability of the illustrated scenarios occurring depends to a great extent on the lease expiration profile because long-term contracts are unlikely to be subject to short-term fluctuations in rental income.

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CONSOLIDATED FINANCIAL STATEMENTS

The table below, for the development projects, illustrates the sensitivity of the fair value to an increase or decrease in the calculated outstanding construction costs. It is based on the five largest development projects with planned outcomes that are entirely apportionable to the CA Immo Group. The total investment costs for these projects are estimated at around € 791m.

Still outstanding capital expenditures

in € m – 10% – 5% Initial value 5% 10%

Outstanding capital expenditures 361.4 381.4 401.5 421.6 441.7 Fair values 441.6 421.5 401.4 381.3 361.2 Changes to initial value 10.0% 5.0% 0.0% – 5.0% – 10.0%

The calculated scenarios indicate that a largely linear relationship exists at present between a change in the outstanding investment costs and the fair values. This linear relationship represents only a snapshot, however, because the book values as of the reporting date were more or less identical to the expected outstanding investment costs. As the stage of completion advances, the relationship will become more disproportionate because the ratio of the outstanding investment costs to the invested capital will gradually diminish.

Estimation of net realisable value for properties intended for trading Properties intended for trading are initially measured at cost. Thereafter they are measured at the lower of cost and net realisable value as of the relevant reporting date.

The net realisable value is the estimated sales proceeds obtainable in the course of ordinary business, less the estimated cost to completion and the estimated necessary selling costs.

Estimates of the net realisable value of the properties classified as inventories are based on market value reports and/or internal valuations.

1.6.6. Accounting and measurement methods in detail CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Investment property (including properties under development) All investment properties are measured according to the fair value model specified as an option under IAS 40. Under this model, the property assets are measured at the fair value prevailing on the relevant reporting date. Differences compared with the current book value prior to revaluation (fair value of prior year, plus subsequent/additional acquisition or production cost, less subsequent acquisition cost reductions) are recognised in the income statement under "Result from revaluation" (see Points 2.3.1. and 2.1.12.).

Financing costs for property under development are capitalised as production costs according to the conditions set forth in IAS 23. In this respect the CA Immo Group applies an option for investment properties.

Own used properties and office furniture, equipment and other assets Some properties are held for a dual purpose, namely to generate rental income and/or appreciate in value on the one hand, and for administration purposes on the other. If these portions can be sold separately, the CA Immo Group also recognises them separately. If the portions cannot be sold separately, the properties are classified as investment proper-

ties only if the portion held for administration purposes is insignificant (own use totals less than 5 % of the total useful area).

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The own used properties and the office furniture, equipment and other assets items are measured in accordance with the cost method; in other words, at acquisition or production cost less regular depreciation and impairments. Invest- ment grants are recognised as reductions of acquisition costs from the time a binding agreement exists.

Regular depreciation of office furniture, equipment and other assets is done on a straight-line basis over the estimated useful life, which is generally 3 to 10 years. The estimated useful life of the own used properties, applying the principle that each part of an item with a significant cost shall be depreciated separately, is 10 to 80 years.

Intangible assets Intangible assets are recognised in the statement of financial position at acquisition cost less straight-line amortisation and impairments. For the amortisation of computer software, a useful life of 3 to 5 years was assumed.

The other intangible assets item contained in the statement of financial position equals the difference arising from the allocation of acquisition cost to the fair values of the acquired properties and the relevant deferred tax liabilities not discounted in line with IAS 12. This difference represents the benefit resulting from the later maturity of the deferred tax liabilities. It is amortised regularly in accordance with the maturity and derecognised upon disposal. Impairments are recognised because of the fall in the properties' market value. The amortisation and disposals are recognised in the tax expense.

Impairments If signs of a value impairment are evident, the CA Immo Group determines the recoverable amount for the own used properties, office furniture, equipment and other assets and intangible assets. The recoverable amount is the higher of the fair value less the cost of selling (net realisable value) and the value in use.

Fair value is the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction.

The value in use is the present value of the expected future cash flows that are likely to be generated by the continued use of an asset and its retirement at the end of its useful life.

If this recoverable amount is lower than the carrying value of the asset, the asset is written down to the lower value.

The calculated impairment is recognised in the income statement under depreciation and amortisation (see Points 2.3.1. and 2.1.10.).

If at a later date a value impairment ceases to exist, the impairment loss is reversed to profit or loss up to the carrying amount of the amortised original acquisition or production cost (see Point 2.1.11.).

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Reversal of impairments In the case of long-term properties, only impairments of own used properties can be reversed because changes in the market value of investment properties and properties under development are recognised in the result from revaluation in compliance with IAS 40.

An impairment loss is reversed up to the carrying amount of the amortised original acquisition or production cost.

Financial assets The securities recognised under financial assets are attributed to the category "at fair value through profit and loss" because the securities are controlled on the basis of the fair values. The securities are measured as of the acquisition date at fair value excluding transaction costs directly attributable to the securities' acquisition. In subsequent periods they are measured at the fair value as of the reporting date, as indicated by stock market prices. Gains or losses are recognised in profit or loss. The result of the market valuation and realisation is recognised under the result from financial investments. Securities purchases and sales are recognised at the trading date.

Loans granted by the company and prepayments made on investments in properties are carried at fair value upon recognition. They are subsequently measured at amortised cost.

Investments in associated companies are valued at equity. Changes in the shareholders' equity of associates are recognised in profit or loss under the income from associated companies. Changes in shareholders' equity that are not recognised in profit or loss are recognised in the reserves from associates.

The financial assets also contain interests in companies which, owing to a lack of control, are not consolidated and measured at cost (see Point 2.3.3.).

Assets held for sale and disposal groups Non-current assets and disposal groups are deemed by IFRS 5 to be "held for sale" if they can be sold in their current condition and their sale is highly probable. Disposal groups consist of assets that are to be sold or otherwise disposed of together in a single transaction together with associated liabilities that are also to be transferred by way of the transaction. Non-current assets and disposal groups are classified as held for sale if the relevant book value is to be realised largely from a disposal and not from continued use. This condition is considered satisfied only if the sale is highly probable and the non-current asset is available for immediate sale in its present condition. The management must be committed to a plan to sell. Furthermore, the sale must be highly probable within one year of the classification as held for sale.

The CA Immo Group measures investment properties according to the fair value model envisaged by IAS 40; these FINANCIAL STATEMENTS CONSOLIDATED properties do not fall within the scope of the measurement requirements of IFRS 5. The measurement rules applicable pursuant to IAS 40 therefore also apply to the assets classified according to IFRS 5. The disclosure requirements of IFRS 5 apply nonetheless.

If the conditions for the classification as held for sale are no longer met, the asset or the assets and liabilities belonging to the disposal group are reclassified to the relevant item.

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Property intended for trading Properties held for sale in the ordinary course of business, or in the process of development or construction for such sale, are recognised as inventories in compliance with IAS 2.

They are measured at the lower of cost and net realisable value as of the relevant reporting date.

The necessity of writing inventories down below cost to net realisable value is examined separately for each property. When the circumstances that previously caused inventories to be written down to the net realisable value no longer exist, the amount of the impairment is reversed so that the new carrying amount is no higher than the historical acquisition or production cost (see Point 2.3.7.).

Financing costs arising during the construction phase are capitalised as production costs in the case of property intended for trading if the criteria of IAS 23 are satisfied.

Receivables and other assets Receivables, unless from fiscal authorities, are primary financial instruments that are not listed on active markets and not intended for sale.

Trade receivables and other assets are initially recognised at fair value and subsequently measured at amortised cost, applying the effective interest-rate method and allowing for impairments.

Receivables from property sales having a period for payment of greater than one year are recognised as non-current assets at cash value as of the relevant reporting date.

An impairment for trade debtors and other assets is formed depending on the status of the dunning procedure, the past due date, and the individual credit rating of the relevant debtor, paying due regard to the security received, and is recognised if there is an objective indication that the receivables cannot be collected in full. Uncollectible receivables are derecognised. Subsequent payments in respect of receivables for which impairment losses have been recognised are recognised in profit and loss under the other operating income.

Contracts for the performance of services directly connected with the construction of an asset are recognised in compliance with IAS 11 and – if the conditions are met – carried under the trade debtors. Pursuant to the applicable percentage of completion method, the contract revenue and costs associated with the construction contract are recognised in proportion to the stage of completion as of the reporting date. The stage of completion is established according to the ratio of contract costs incurred as of the reporting date to the estimated total contract costs as of the reporting date (cost- to-cost method). An expected loss from a construction contract is immediately recognised as an expense (see Point 2.1.4.).

Cash and cash equivalents that are subject to drawing restrictions and have a remaining term of more than three months are recognised under the receivables and other assets.

Deferred expenses are contained in the current receivables and other assets.

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Cash and cash equivalents Cash and cash equivalents include cash, sight deposits with banks as well as fixed-term deposits with an original term of up to three months. This item also encompasses bank balances subject to drawing restrictions of not more than 3 months.

Payment obligations to employees Variable remuneration In business year 2010, the members of the Management Board were for the first time invited to take part in an LTI (long-term incentive) programme with a term of three years. Participants are required to invest funds of their own,

subject to a ceiling of 50 % of their basic salary. This own investment is measured at the closing rate on 31.12.2009, and the number of underlying shares is calculated accordingly. Performance is measured according to several indicators, namely NAV growth, ISCR (interest service coverage ratio) and TSR (total shareholder return). Employees belonging to

the first tier of management were also invited to join the LTI scheme. Their own investment is restricted to 35 % of their basic salary. Therefore this is classified as cash-settled share-based payment plan. A provision for the services received from employees is recognised in connection with this LTI programme, the amount of which is measured upon recognition at fair value (see Point 2.3.12.). Until the liability is settled, its fair value is remeasured as of each reporting date and on the settlement date, and all changes in fair value are recognised in profit or loss.

Defined benefit plans upon termination of employment The CA Immo Group has the legal obligation to make a one-off severance payment to staff employed in Austria before 1.1.2003 in the event of dismissal or retirement. The amount of this payment depends on the number of years of service and the relevant salary at the time the settlement is payable. It varies between two and twelve monthly salary payments. A provision is formed for this defined benefit obligation. The projected cover funds are calculated according to IAS 19 by the projected unit credit method based on the following parameters:

31.12.2010 31.12.2009

interest rate 4.5% 5.0% salary increases expected in the future 2.0% 2.0% accumulation period 25 years 25 years Forecast income from plan asset 6.0% 6.0%

In addition, obligations arising from defined benefit pension plans exist for four persons in the Vivico Group. The commitments concern four pension expectancies, three of which are for managing directors who have already retired. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED For the defined benefit pension plans, the pension obligation is calculated according to IAS 19 by the projected unit

credit method based on a discount rate of 4.5 % and anticipated increases in entitlement of 2.0 %. For this purpose, external actuarial opinions are obtained annually. In respect of the reinsurance cover obtained in previous years for defined benefit pension obligations, plan assets are recognised according to IAS 19.59 under the non-current receivables and other assets to the extent that the plan assets exceed the present value of the future obligations and the claims are due to the CA Immo Group (see Point 2.3.4.).

The full amount of actuarial gains and losses in connection with the obligation is recognised in profit and loss – in the indirect expenditures – in the year in which such gains and losses arise.

Both actuarial gains and losses in connection with the plan assets and the expected return on the plan assets are fully recognised in profit and loss under the result from financial investments in the year in which they arise.

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Defined contribution plans

The CA Immo Group has the legal obligation to pay 1.53 % of the monthly salary of all staff joining companies in Aus- tria after 31.12.2002 into a staff pension fund. No other obligations exist. Based on agreements with a pension fund in Austria and a benevolent fund for small and medium-sized enterprises in Germany, a defined contribution pension commitment exists for employees in Austria and Germany after a certain number of years of service.

Other provisions Other provisions are recognised if the CA Immo Group has legal or actual obligations towards a third party due to a past event and the obligation is likely to lead to an outflow of funds. Such provisions are stated at the value determina- ble by the best possible estimate at the time the consolidated financial statements are prepared. If a reasonable estimate of the amount is not possible or if it is not probable that there will be an outflow of resources for the entity, a provision is not set up and an explanation of the facts is given in the Notes. If the cash value of the provision determined on the basis of prevailing market interest rates differs substantially from the nominal value, the cash value of the obligation is stated.

Taxes The income tax expense reported for the business year contains the income tax of the individual subsidiaries calculated from their taxable income and the tax rate applicable in the relevant country ("current tax") and the change in deferred taxes recognised in profit and loss ("deferred tax"), the tax effect arising from equity capital postings not giving rise to temporary differences and recognised in equity (e.g. taxes concerning issuing costs of capital increases and subscription rights to convertible bonds, the measurement and sale of own shares and – in some cases – the measurement of derivative transactions), as well as the amortisation of the item "Other intangible assets" (see Point 2.3.2.).

In line with IAS 12, all temporary differences between the statement of financial position for tax purposes and the consolidated statement of financial position are given consideration in the calculation of deferred taxes. Deferred taxes on losses carried forward are capitalised to the extent that such losses carried forward are likely to be netted against future tax profits within the next five to seven years.

For the calculation of deferred taxes, the tax rates expected to apply at the time of reversing the temporary differences are used. The calculation of deferred taxes was based on the following tax rates:

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CONSOLIDATED FINANCIAL STATEMENTS

country Tax rate 2010 2009

Bulgaria 10% 10% 15.825% 15.825% Germany to 31.925% to 31.79% Croatia - 20% Luxembourg 28.59% 28.59% Netherlands 20% 20% Austria 25% 25% Poland 19% 19% Romania 16% 16% Russia 20% 20% Switzerland 31.925% 31.925% Serbia 10% 10% Slovakia 19% 19% Slovenia 20% 20% Czech Republic 19% 19% Hungary 10% to 19% 19% Cyprus 10% 10%

Income tax is payable in the country concerned as a general rule on both rental income and capital gains from the properties. Income from the disposal of investments in companies in Germany, Switzerland and Eastern/South East Europe is wholly or partially exempt from income tax subject to compliance with certain conditions. Although the CA Immo Group intends to satisfy these conditions, deferred tax liabilities are recognised in the full amount for the property assets.

A group and tax compensation agreement for the formation of a group of companies as defined by Section 9 of the Austrian Corporation Tax Act (KStG) has existed for the CA Immo Group in Austria since business year 2005. The head of the group is CA Immobilien Anlagen Aktiengesellschaft, Vienna. In 2010 the following companies were members of the group:

- CA Immo BIP Liegenschaftsverwaltung GmbH, Vienna - CA Immo CEE Beteiligungs GmbH, Vienna - CA Immo Galleria Liegenschaftsverwaltung GmbH, Vienna CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED - CA Immo Germany Holding GmbH, Vienna - CA Immo International Beteiligungsverwaltungs GmbH, Vienna - CA Immo International Holding GmbH, Vienna - CA Immo Investment Management GmbH, Vienna - CA Immo LP GmbH, Vienna - CA Immo ProjektentwicklungsgmbH, Vienna - CA Immo Rennweg 16 GmbH, Vienna - CA Immo - RI - Residential Property Holding GmbH, Vienna - BIL-S Superädifikatsverwaltungs GmbH, Vienna - omniCon Baumanagement GmbH, Vienna - Parkring 10 Immobilien GmbH, Vienna - SQUARE S Holding GmbH, Vienna

135

CONSOLIDATED FINANCIAL STATEMENTS

In the Vivico Group, a tax consolidation arrangement for corporate income tax and trade tax purposes exists under German law between the controlling enterprise Vivico Real Estate GmbH, Frankfurt, and the following controlled subsidiaries: - Vivico München Ambigon Nymphenburg Verwaltungs GmbH, Frankfurt - Vivico Bauphase I Verwaltungs GmbH, Frankfurt - Vivico Köln K1 GmbH, Frankfurt - Vivico Köln K2 GmbH, Frankfurt - Vivico Köln K3 GmbH, Frankfurt - Vivico München MK 2 Arnulfpark Grundstücksverwertungs GmbH, Frankfurt - Vivico München MK 6 Arnulfpark Grundstücksverwertungs GmbH, Frankfurt - Vivico Schöneberger Ufer Beteiligungs GmbH, Frankfurt - Vivico Schöneberger Ufer Verwaltungs GmbH, Frankfurt - Vivico Unter den Linden Beteiligungs GmbH, Frankfurt - Vivico Unter den Linden Verwaltungs GmbH, Frankfurt

The profit-pooling agreements existing since business year 2005 oblige the controlled companies to transfer to the controlling enterprise their entire profit (the annual surplus before the profit transfer, less any loss carried forward from the previous year – excepting the formation or reversal of reserves). Vivico Real Estate GmbH, Frankfurt, is obliged to make good any annual deficit arising for the duration of the agreement to the extent that they are not equalised by drawings on amounts allocated to the retained earnings during the term of the agreement.

Financial liabilities Financial liabilities are recognised upon disbursement at the amount actually received, less transaction costs. Any difference between the amount received and the repayment amount is allocated over the term of the financing according to the effective interest-rate method and recognised under financing costs or, if the conditions set forth in IAS 23 are met, capitalised as part of the acquisition, construction or production cost.

Trade creditors and other liabilities Trade creditors and other liabilities are measured at amortised acquisition cost.

A fundamental distinction is made between financial and non-financial liabilities in compliance with IAS 32.

Financial liabilities are measured at fair value on initial recognition.

For current trade creditors, the fair value generally corresponds to the estimated sum of all future payments. For non- current creditors, the acquisition cost of the liabilities corresponds to their cash value, determined by discounting the future payments with a reasonable market interest rate giving due consideration to the maturity and risk. Interest rates with matching maturities for bearer debt securities or government bonds, plus a premium, are used as the discount rates.

Other non-financial liabilities are measured on initial recognition at the amount corresponding to the likely outflow of funds. When measured subsequently, value changes arising from new information are recognised in profit or loss. The non-current, deferred payments received in advance (prepayments received) are marked up, when subsequently measured, with a reasonable market interest rate giving due consideration to the maturity and risk. The accrued interest is recognised in profit and loss under the financial result.

136

CONSOLIDATED FINANCIAL STATEMENTS

Derivative financial instruments The CA Immo Group uses derivative financial instruments, such as interest rate caps and swaps, and forward foreign exchange transactions, in order to hedge against interest and currency risks. These derivative financial instruments are recognised at fair value at the time the contract is concluded and remeasured at fair value in the following periods. Derivative financial instruments are recognised as financial assets if their fair value is positive, and as financial liabilities if their fair value is negative. The fair value of the derivative financial instruments corresponds to the amount that would be payable by the CA Immo Group if the position were closed on the reporting date.

A derivative is recognised as a non-current asset or liability if the remaining term of the instrument is more than twelve months and realisation or settlement of the derivative within twelve months is not expected. The other derivatives are recognised as current assets or liabilities. If a reliable separation according to maturities within the remaining term is not possible, the individual derivatives are not divided into short and long-term portions.

The method applied to recognise gains and losses depends on the classification of the derivative financial instrument, as either a cash flow hedge (safeguard against future cash flows) or a fair value hedge (safeguarding the fair value of assets and liabilities), and on the satisfaction of the criteria for hedge accounting.

Cash flow hedges In the case of derivatives serving the purpose of hedging cash flows and thus qualifying as cash flow hedges, the effective portion of the change in fair value is recognised in the other comprehensive income; in other words, directly in equity (see Point 2.2.). The ineffective portion is immediately recognised as an expense under the item "Result from interest derivative transactions". The measurement gains or losses from cash flow hedges recognised in equity are reclassified into profit or loss in the period in which the hedged underlying is recognised in profit or loss and/or the conditions for (cash flow) hedge accounting are no longer satisfied.

In order to satisfy the conditions governing classification as a cash flow hedge, the CA Immo Group, upon inception of the derivative/transaction, records the hedging relationship between the hedging instrument and the underlying transaction, the aim of its risk management, and the underlying strategy pursued when concluding hedging transactions. The effectiveness of the hedging relationship is regularly assessed by measuring the prospective and retrospective effectiveness.

Fair value derivatives In order to make a clear distinction from cash flow hedges, the CA Immo Group describes derivatives that do not satisfy or no longer satisfy the criteria for cash flow hedge accounting as "fair value derivatives". The change in the fair value of fair value derivatives is recognised in profit or loss under the item "Result from interest derivative transac-

tions". FINANCIAL STATEMENTS CONSOLIDATED

Since 2009, interest rate swaps have been used in some cases to hedge derivatives that no longer satisfy the conditions applying to cash flow hedges; these swaps are also classified as fair value derivatives.

Contingent liabilities These are possible obligations arising from past events, whose existence depends on the occurrence or non- occurrence of one or several uncertain future events that are not entirely within the Group's control. Contingent liabilities also encompass future obligations arising from past events for which provisions have not been formed, either because an outflow of funds is not probable, or because the amount of the obligation cannot be estimated with sufficient reliability.

Contingent liabilities are recognised as soon as a future outflow of funds is not improbable. The stated amounts are measured by applying the methods that apply to measuring provisions.

137

CONSOLIDATED FINANCIAL STATEMENTS

Segment reporting Identification of reportable segments is based on information regularly used by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Operating segments are disclosed by regions and sectors. This approach conforms to the internal reporting used by the CA Immo Group.

Due to Vivico Groups main activity in development, operating segments are additionally disclosed by sectors. The classification to a sector is based on categories of the investment properties or management companies. The allocation differentiates the following categories:

- Income producing: let investment properties, own used properties and investment properties according to IFRS 5 - Development: investment properties under development and land reserves, development services for third parties and investment properties under development in accordance with IFRS 5 - Trading: property intended for trading

Recognition of revenues Rental income is recognised on the basis of the lease contracts.

Revenues and income from the sale of properties are recognised if

- all the material opportunities and risks associated with ownership have passed to the buyer, - the CA Immo Group does not retain any rights of disposal in respect of the object sold, - the amount of the revenues and the costs associated with the sale can be reliably determined, and - it is sufficiently likely that the economic benefit from the sale will accrue to the CA Immo Group.

Income from service contracts is recognised – in compliance with IAS 18 – in proportion to the services performed as of the reporting date.

Income from the sale of properties under construction is assessed according to IFRIC 15 in order to establish whether IAS 11 or IAS 18 applies. The outcome of the assessment determines when the income from a sale during construction is to be recognised.

A first analysis of the agreement for the construction of real estate is the prerequirement for the assessment of facts in accordance with IFRIC 15. The entity has to conclude on this analysis that it will retain neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the constructed real estate sold.

An entity has effective control, if it can realise the future economic benefit from the real estate. Continuing managerial involvement to the degree usually associated with ownership is the right to use the real estate. This includes the right to retain the revenues attributable to the use of the property (e.g. rent income, see above). It further includes the right to change the property in shape and appearance (influencing design of the property) and the right to sell the property, either entirely or partially, and to retain the gain on the sale (sale of the property).

Property development (where applicable after consideration of the required distinction from other components of the agreement in accordance with IAS 18.13) is further treated in accordance with IFRIC 15.10 et seq.:

A significant characteristic of the accounting in accordance with IAS 11 is the specifically negotiated contract; the construction is carried out specifically for the buyer (under German law, contract for services (Sec. 631 et seq. BGB) or work and delivery contract (Sec. 651 BGB) are the relevant types of contracts). In accordance with IAS 11.5, contracts for the rendering of service are also within the scope.

138

CONSOLIDATED FINANCIAL STATEMENTS

Under IFRIC 15, an agreement for the construction of real estate meets the definition of a construction contract in accordance with IAS 11 when the buyer is able to specify the major structural elements of the design of the real estate before construction begins and/or specify major structural changes once construction is in progress. It is irrespective if this ability is exercised. In contrast, an agreement for the construction of real estate limiting the buyers’ influence to the design of the real estate, e.g. to select a design from a range of options specified by the entity or to specify only minor variations to the basic design, is an agreement for the sale of goods within the scope of IAS 18.

When revenues from property transactions are being realised, IAS 18 requires that contracts are separated into individual services if material different services are combined in a single contract (multiple element transactions). A multiple element transaction is deemed to exist if a contract contains several complementary but different elements, such as a service alongside a sale. The revenues from the individual components of a contract are realised separately if both the substance and the value of the components are separable. In such cases, the contractually agreed purchase price is separated into components, for the purchase price of the property on the one hand and the purchase price for the services to be performed on the other. The purchase price of the property is recognised according to the criteria for realis- ing revenues from sales. The revenues arising from the service are realised according to the stage of completion. The portion of the purchase price attributable to services not yet performed is recognised as a prepayment received under other liabilities until it is realised.

Income from property trading In compliance with IAS 2, properties intended for trading are remeasured as of each quarterly reporting date at the lower of cost and net realisable value. If a write-down is necessary, it is recognised under depreciation and amortisation (impairments). The economic annual result for a property sold in the business year is therefore reflected – if the net realisable value changes during the year – in the depreciation and amortisation, the reversal of write-downs of properties intended for trading, and in the result from property transactions (see Point 2.1.3.).

Result from the sale of long-term properties In compliance with IAS 40, investment properties are measured at market value as of each quarterly reporting date. The economic annual result for a property sold in the business year is therefore reflected – if the market value changes during the year – in both the result from revaluation (difference between the market value as of the most recent quarterly reporting date and the market value as of the end of the preceding business year) and the result from the sale of long- term properties (the difference between the sales revenue and the market value as of the most recent quarterly reporting date) - see Point 2.1.6.

Financial result Financing costs comprise interest payable for external funds (if not eligible for capitalisation according to IAS 23),

interest recognised by the effective interest-rate method, interest for committed external funds not yet received, current FINANCIAL STATEMENTS CONSOLIDATED interest on hedging transactions, the interest costs arising from the calculation of retirement benefits and expenses similar to interest. Interest is deferred over time.

The foreign currency gains and losses arising chiefly in connection with financing and investment transactions, the changes in the measurement of forward foreign exchange transactions, and the amounts arising from the realisation of such transactions are shown separately in the financial result.

The result from interest derivative transactions consists of gains and losses from the sale or measurement of interest rate swaps and caps unless same are recognised in equity as cash flow hedges. A cash flow hedge relationship does not exist in the case of interest rate swaps and caps without a concurrent credit agreement (recognised directly in equity), so that changes in the measurement of such swaps and caps are recognised in the result from interest derivative transactions. The non-effective portion of the cash flow hedge relationships is also recognised in the result from interest derivative transactions. The fair values of the interest rate swaps and caps are calculated by discounting the future cash flows from variable payments on the basis of generally recognised models of financial mathematics.

139

CONSOLIDATED FINANCIAL STATEMENTS

The result from financial investments includes interest, dividends and other income from the investment of funds and investments in financial assets, gains and losses from the measurement and sale of securities, actuarial gains and losses in connection with plan assets, and the expected return on plan assets (see Point 2.1.16).

The impairment of financial investments refer to the valuation of loans, prepayments on investments in properties, and the measurement of interests in joint ventures which, owing to a lack of control, are not consolidated and measured at cost.

The income from associated companies encompasses the individual results of companies valued at equity.

Non-controlling interests held by limited partners contain the pro rata net income of non-controlling partners in Ger- man limited partnerships, whose capital contribution is recognised as loan capital in the statement of financial position under the non-controlling interests held by limited partners.

140

CONSOLIDATED FINANCIAL STATEMENTS

2. NOTES TO THE CONSOLIDATED INCOME STATEMENT, CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED CASH FLOW STATEMENT

2.1. Consolidated income statement 2.1.1. Gross revenues and segment reporting The consolidated income statement adopts the type of expenditure format.

The segments generate gross revenues from letting activities, the sale of properties intended for trading as well as from development services. The gross revenues are attributed to the country in which the investment properties are situated. Most of the revenues are generated in Austria and Germany. None of the countries in the Eastern/South East Europe

segment generates more than 10 % of the total rental income; at 6.9 % (2009: 5.1 %), Hungary is the country generating the most revenues in this region.

The CA Immo Group generates rental income from a number of investment property lessees. There is one tenant in

Germany (Fed. State Hessen) from whom the CA Immo Group generates more than 10 % of the total rental income. The portion of this tenant in Hessen in the total rental income is as follows:

€ 1,000 2010 2009

Rental income Fed. State Hessen 42,553.1 41,818.1 Rental income total 164,333.9 176,974.5 Principal tenant as a % of the rental income total 25.9% 23.6%

Market value properties leased to Fed. State Hessen 787,600.0 768,203.0 Market value investment properties 2,716,211.2 2,409,589.1 Principal tenant as a % of the investment properties 29.0% 31.9%

The accounting and valuation principles of the reporting segments correspond to those accounting and valuation principles described in section 1.6.

In the segment reporting by regions, transactions among segments are attributed as follows:

- The expenditure relating to the management is attributed based on the actual costs incurred in the individual seg- CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED ments. - Interest expenses and income are attributed based on the corresponding agreements.

- Financial liabilities in the amount of € 216,030.1 K (31.12.2009: € 0.0 K) and the related interest expenses/income relating to the acquisition of Europolis AG, Vienna, as well as the acquisition of CA Immo International AG, Vienna, are attributed to the Eastern/South East Europe segment. The Austrian segment is credited in the same amount. - Financing costs and result from financing investments after elimination of interest expenses/income from intercom- pany loans that are attributed to one and the same segment are broken down by and attributed to each segment.

141

CONSOLIDATED FINANCIAL STATEMENTS

In the segment reporting by sectors, transactions among segments are attributed as follows:

- Management expenses are attributed based on the percentage share in investment properties at the balance sheet date. - Interest expenses and income are attributed based on the corresponding agreements.

- Financial liabilities in the amount of € 265,090.2 K (31.12.2009: € 261,950.5 K) and the related interest expenses and derivative transactions resulting from the acquisition of the Vivico Group are attributed to the Development segment. The Income producing segment is credited in the same amount. - Financing costs and result from financing investments after elimination of interest expenses/income from intercom- pany loans that are attributed to one and the same segment are broken down by and attributed to each segment.

2.1.2. Rental income The rental income is as follows:

€ 1,000 2010 2009

Rental income 164,333.9 176,974.5 Operating costs passed on to tenants1) 30,204.0 29,133.7 Gross rental income 194,537.9 206,108.2 Operating expenses – 35,547.2 – 35,015.9 Other expenses directly related to properties – 26,196.7 – 19,696.1 Net rental income 132,794.0 151,396.2 Net rental income as a % of the gross rental income 68.3% 73.5%

1) The operating costs passed on to tenants comprise operating cost advances 2010, additional operating costs from prior years, preliminary service cost accruals 2010 and lump-sum service cost advances.

2.1.3. Result from property transactions The economic result from property transactions is as follows:

€ 1,000 2010 2009

Income from sales 115,657.2 78,025.5 Book value of properties intended for trading – 84,766.7 – 66,152.1 Other development expenses/materials expenses – 309.7 – 1,089.5 Own operating costs (vacancy costs) – 564.0 – 919.6 Result from property transactions 30,016.8 9,864.3 Result from property transactions as a % of the income from sales 26.0% 12.6%

Reversal of write-down / impairment on sold properties 473.1 – 734.9 Economic result from property transactions 30,489.9 9,129.4

The other development expenses/materials expenses include non-capitalisable project costs at the Vivico Group, in particular advertising and public relations expenses.

For details regarding the reversal of write-down/impairment loss see sections 2.1.11 and 2.1.10.

142

CONSOLIDATED FINANCIAL STATEMENTS

Due to the separation of realised earnings, the result from property transactions is as follows:

€ 1,000 2010 2009

Result from sales in the current business year 28,851.0 8,634.8 Subsequent result from sales in prior years 863.4 2,638.4 Result from multi-component transactions 1,176.1 600.1 Other development expenses/materials expenses – 309.7 – 1,089.5 Own operating costs (vacancy costs) – 564.0 – 919.6 Result from property transactions 30,016.8 9,864.3

2.1.4. Result from development services: € 1,000 2010 2009

Gross revenues from commissioned work as per IAS 11 1,609.4 4,152.4 Gross revenues from service contracts 1,154.4 366.5 Other material costs – 625.2 – 1,756.0 Result from development services 2,138.6 2,762.9 Result from services as a % of the development revenues 77.4% 61.1%

Staff expenses 1) – 1,574.6 – 1,156.3 Economic result from development services 564.0 1,606.6

1) Staff expenses are included in indirect expenditures.

The costs incurred for commissioned work as defined in IAS 11 in projects in process at the balance sheet date total

€ 1,171.9 K (2009: € 1,240.0 K). The prepayments received total € 3,029.2 K (31.12.2009: € 1,938.1 K). Profits registered

according to progress of performance in the 2010 financial year amount to € 142.3 K (2009: € 206.3 K).

The receivables recognised using the percentage-of-completion method (PoC) include accumulated order costs, as well as realised earnings; they are disclosed under "Trade debtors (Other)" (see Point 2.3.8.).

2.1.5. Operating result and other expenses directly related to properties

The expenses disclosed relate to expenses incurred from let investment property and non-capitalisable expenses relat- FINANCIAL STATEMENTS CONSOLIDATED ing to the investment properties under development.

143

CONSOLIDATED FINANCIAL STATEMENTS

€ 1,000 2010 2009

Operating costs passed on to tenants 30,204.0 29,133.6 Operating expenses – 35,547.2 – 35,015.9 Own operating costs – 5,343.2 – 5,882.3

Maintenance costs – 8,245.0 – 7,960.0 Bad debt losses and reserves for bad debts – 4,463.6 – 3,412.3 Agency fees – 1,736.0 – 950.8 Property tax – 1,533.0 – 983.4 Administrative fees – 915.3 – 722.2 Claims – 593.9 – 181.1 Non-deductible property-related input VAT – 523.3 – 346.4 Other directly related expenses – 2,474.7 – 1,728.7 Other expenses directly related to investment properties – 20,484.8 – 16,284.9

Operating expenses related to investment properties under development – 3,714.5 – 1,653.0 Property advertising costs – 1,468.7 – 619.2 Project development and project execution – 528.7 – 1,139.0 Other expenses directly related to investment properties under development – 5,711.9 – 3,411.2

Other expenses directly related to properties - total – 26,196.7 – 19,696.1

Total – 31,539.9 – 25,578.4

The maintenance costs primarily incurred in the Germany segment.

Bad debt losses and reserves for bad debts primarily result from receivables value adjustments in respect of tennats in Slovenia, Germany and the Czech Republic.

The increase in the operating expenses related to investment properties under development mainly result from the Vivico Group and primarily relates to property tax for properties under construction (incl. subsequent charges for pre-

vious years in the amount of € 1,004.8 K).

The property advertising costs increased mainly as a result of the intensified marketing activities regarding investment property under development in Germany.

For details regarding the operating costs and other expenses directly related to properties see the segment reporting by regions and sectors.

2.1.6. Economic result from the sale of long-term properties In this item, the results from sales of long-term investment properties, investment properties under development and properties disclosed in accordance with IFRS 5 are included.

The CA Immo Group compiles interim accounts as at each quarterly reporting date in accordance with the IFRS. Dur- ing the year, investment property is revalued. However, in the event such investment property is sold during the financial year, but after the balance sheet date of the interim statements in accordance with the IFRS, no changes in the revalued amount are disclosed. Hence, the economic result from the sale is included in the results from the sale of long-

144

CONSOLIDATED FINANCIAL STATEMENTS

term properties, on the one hand and - from the beginning of the year to the balance sheet date of the most recent interim accounts prior to the sale - in the revalued result, on the other hand.

The result from the sale of long-term properties primarily comprises the sale of investment properties under development in Germany and Austria.

The total economic result from the sale of long-term properties breaks down as follows:

€ 1,000 2010 2009

Result from sale of investment properties 1,004.4 429.2 Result from sale of investment properties under development – 288.7 7,299.1 Subsequent result from sales in prior years 635.4 160.1 Result from multi-component transactions and realisation of received down- payments 2,064.2 1,329.3 Result from the sale of long-term properties 3,415.3 9,217.7

plus revalutation gains/losses from sold - investment properties in Austria 6,900.1 – 4,310.0 - investment properties in Germany 0.0 5,429.2 - properties under development in Germany 7,763.9 2,890.5 - properties under development in Eastern/South East Europe 0.0 4,478.8 Result from revaluation of sold properties 14,664.0 8,488.5 Economic result from property sales 18,079.3 17,706.2

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

145

CONSOLIDATED FINANCIAL STATEMENTS

2.1.7. Indirect expenditures The indirect expenditures break down as follows:

€ 1,000 2010 2009

Internal management Staff expenses – 25,302.9 – 25,610.8 Office rent – 2,231.7 – 2,332.9 Administrative and management fees – 1,038.5 – 1,007.0 Travel expenses and transportation costs – 956.0 – 1,075.7 Telephone fees – 566.9 – 611.2 Office expenses and other leasing costs – 551.4 – 499.6 Membership fees and licences – 435.4 – 901.9 Other vehicle costs – 341.2 – 316.2 Vehicle leasing – 253.4 – 246.7 Seminar and training costs – 57.1 – 41.2 Others – 768.4 – 1,013.9 – 32,502.9 – 33,657.1

Legal, auditing and consultancy fees Solicitor´s fee – 2,280.0 – 2,509.1 Tax consulting and accounting fees – 1,636.4 – 975.9 Auditing costs – 1,523.3 – 1,575.4 Other fees – 1,320.0 – 634.4 Expert opinions – 863.7 – 1,197.1 Technical consulting fees – 632.2 – 208.4 Notary´s fee – 178.2 – 215.4 Staff recruitment and appointment – 95.8 – 79.0 Group reorganisation 0.0 – 836.0 – 8,529.6 – 8,230.7

Other indirect expenses Value adjustments – 2,119.7 – 1,025.1 Advertising and representation – 1,451.1 – 1,169.0 Non-deductible input VAT – 1,008.2 – 1,724.5 Bank charges and bank guarantee fees – 592.2 – 2,112.9 Insurance fees – 385.9 – 389.4 Taxes and duties – 326.0 – 2,602.7 External project management – 176.6 – 369.0 Remuneration of the Supervisory Board – 153.7 – 235.5 Publication costs – 108.7 – 196.2 – 6,322.1 – 9,824.3 Total – 47,354.5 – 51,712.1

146

CONSOLIDATED FINANCIAL STATEMENTS

The staff expenses in the total amount of € 25,302.9 K (2009: € 25,610.8 K) include staff expenses relating to the Vivico

Group in the amount of € 17,902.9 K (2009: € 19,281.5 K), staff expenses in the amount of € 3,827.1 K (2009: € 3,925.1 K)

attributable to the Eastern/South East Europe segment, and staff expenses in the amount of € 3,572.9 K (2009:

€ 2,404.2 K) relating to the Austrian segment. The staff expenses also comprise payments to the staff provision fund in

the amount of € 99.3 K (2009: € 62.9 K) and payments to pension and relief funds in the amount of € 253.9 K (2009:

€ 284.4 K).

The administrative and management fees primarily include management services in Austria, in particular relating to the EDP network, software packages, internet platforms and payroll, as well as the administration of CA IMMO NEW EUROPE PROPERTY FUND S.C.A. SICAR, Luxembourg.

The membership fees primarily relate to subscriptions to the Chambers of Commerce.

The legal, auditing and consultancy fees in the total amount of € 8,529.7 K (2009: € 8,230.7 K) relate to the Vivico

Group in the amount of € 2,903.5 K (2009: € 2,320.9 K), to the Eastern/South East Europe segment in the amount of

€ 2,974.7 K (2009: € 2,308.7 K) , and to the other companies in the amount of € 2,651.5 K (2009: € 3,601.1 K). The fees attributable to the Eastern/South East Europe segment primarily increased as a result of the expenses incurred for the due diligence in the course of the acquisition of Europolis AG, Vienna.

The increase in value adjustments result from the value adjustments of a short-term loan granted for the acquisition of additional interests in an associated company in Russia.

The non-deductible value-added tax breaks down into € 882.8 K (2009: € 945.5 K) relating to Germany and € 125.4 K

(2009: € 779.0 K) attributable to Eastern/South East Europe.

The bank charges in 2009 primarily comprise prepayment penalties for the prepayment of loans in Austria and Ger-

many in the amount of € 1,582.7 K.

2.1.8. Capitalised services and changes to stock This item includes capitalisable indirect expenditures (mainly staff expenses) that are attributed on a pro rata basis to the investment properties under development and the properties intended for trading.

€ 1,000 2010 2009

Capitalised services on long-term property assets 10,772.9 11,234.3

Changes to stock properties intended for trading 1,083.6 914.5 FINANCIAL STATEMENTS CONSOLIDATED 11,856.5 12,148.8

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CONSOLIDATED FINANCIAL STATEMENTS

2.1.9. Other operating income The other operating income breaks down as follows:

€ 1,000 2010 2009

Release of provisions 1,280.0 1,549.6 Income from contractual penalties 977.7 0.0 Agency from joint ventures 892.7 1,979.0 Operating costs passed on to tenants 550.6 1,030.7 Release of value adjustments 521.8 295.5 Discharge of lapsed liabilities 418.5 166.5 Property management revenue 129.6 147.2 Settlement from cancellation of rent agreements and compensation 90.4 1,517.2 Insurance compensation 87.1 500.8 Others 1,599.5 1,076.9 6,547.9 8,263.4

The income from the reversal of provisions primarily relates to the Vivico Group, in particular the modified agreements resulting from the procurement of planning permissions in Berlin.

The income from contractual penalties relates to a construction company of a property company in the Czech Repub- lic.

The income from agency activities includes management services of the Vivico Group rendered to a joint venture in Germany.

The operating costs passed on to tenants and insurance compensations result from expenses incurred in previous years.

In the 2010 financial year, settlement from cancellation of rent agreements and compensation were incurred primarily for 2 property companies in Poland and Romania. In the previous year, the compensations for the premature termination of leases were incurred in Poland, Romania and Germany.

The other operating income primarily comprises income from the adjustment of input-VAT in Germany.

2.1.10. Depreciation and amortisation The depreciation and amortisation break down as follows:

€ 1,000 2010 2009

Scheduled depreciation – 1,566.7 – 1,723.6 Impairment for other long-term assets 0.0 – 113.7 Impairment loss for properties intended for trading – 2,155.8 – 8,555.5 Depreciation and amortisation – 3,722.5 – 10,392.8

Depreciation was recorded on office furniture, equipment and other assets, software, and own used properties.

148

CONSOLIDATED FINANCIAL STATEMENTS

The impairment losses of properties intended for trading break down as follows: € 1,000 2010 2009

Impairment loss of properties held on balance sheet date – 1,762.8 – 7,820.6 Impairment loss of properties sold during financial year – 393.0 – 734.9 Impairment loss of properties intended for trading – 2,155.8 – 8,555.5

The impairment losses of properties intended for trading mainly result from a decrease in the fair values of properties in Berlin.

2.1.11. Reversal of write-down In the 2010 financial year, reversal of write-down of properties intended for trading were recorded in the amount of € 926.1 K (2009: € 544.5 K). These reversals were recorded mainly due to the increase in the fair values of properties in Frankfurt and Munich.

The reversal of write-down of properties intended for trading breaks down as follows:

€ 1,000 2010 2009

Reversal of write-down of properties held on balance sheet date 60.0 544.5 Reversal of write-down of properties sold during the bussines year 866.1 0.0 Reversal of write-down of properties intended for trading 926.1 544.5

Reversals of write-down of own used properties were recorded neither in 2010 nor in 2009.

2.1.12. Result from revaluation The result from revaluation breaks down as follows:

€ 1,000 2010 2009

Revaluation gain 117,969.5 125,966.9 Revaluation loss – 71,253.4 – 255,053.4 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Result from revaluation 46,716.1 – 129,086.5

In view of the amendment of IAS 40 in respect of investment properties under development, revaluation gains from hidden reserves as at 1 January 2009, inter alia, have been recognised in the result from revaluation of 2009. The revaluation gain / loss considering the amendment of IAS 40 are therefore not comparable with consolidated statement of comprehensive income.

149

CONSOLIDATED FINANCIAL STATEMENTS

The revaluation gains and losses break down by regions as follows:

€ 1,000 2010 2009

Austria 24,162.5 7,087.0 Germany 68,989.3 114,268.0 Eastern/South East Europe 24,817.7 4,611.9 Revaluation gain 117,969.5 125,966.9

€ 1,000 2010 2009

Austria – 5,743.1 – 22,384.9 Germany – 28,314.7 – 76,102.8 Eastern/South East Europe – 37,195.6 – 156,565.7 Revaluation loss – 71,253.4 – 255,053.4

For details regarding the results from revaluation broken down by segments see Point 2.3.1.

2.1.13. Financing costs The financing costs break down as follows:

€ 1,000 2010 2009

Income from bank interest – 80,777.7 – 85,216.3 Bond interest – 17,202.8 – 11,836.1 Convertible bonds interest – 7,803.5 – 1,103.9 Interest expenses of joint venture partners – 823.5 – 2,175.0 Interest expenses of joint ventures – 24.4 – 10.7 Other interest and financing costs – 10,814.4 – 8,088.2 Financing costs – 117,446.3 – 108,430.2

The bank interest in the total amount of € 80,777.7 K (2009: € 85,216.3 K) relate to the Austrian segment in the amount of € 25,012.1 K (2009: € 29,605.7 K), the Germany segment in the amount of € 37,984.6 K (2009: € 40,231.8 K), and to the Eastern/South East Europe segment in the amount of € 17,781.0 K (2009: € 15,378.8 K). The decrease results from the development of the reference interest and the repayments in particular in the Austrian segment.

The increase in the interest for bonds and convertible bonds results from the bond issued in October 2009 and the convertible bond issued in November 2009.

The other interest and financial costs in the total amount of € 10,814.4 K (2009: € 8,088.2 K) primarily comprise inter-

est on non-current liabilities at € 10,359.7 K (2009: € 8,011.9 K) that are attributable to Austria in the amount of € 3,876.4 K (2009: € 4,310.5 K), to Germany in the amount of € 6,005.9 K (2009: € 3,192.0 K), and to Eastern/South East Europe in the amount of € 477.4 K (2009: € 509.4 K).

150

CONSOLIDATED FINANCIAL STATEMENTS

2.1.14. Foreign currency gain/loss The foreign currency gain/loss breaks down as follows:

€ 1,000 2010 2009

Forward foreign exchange transactions realised 317.4 1,360.4 Value change forward foreign exchange transactions – 910.3 778.1 Foreign currency gain/loss (realised) 328.7 – 1,808.2 Foreign currency gain/loss from valulation 1,013.5 2,243.2 Foreign currency gain/loss 749.3 2,573.5

The completed forward foreign exchange transactions realised include two transactions in Poland at € 1,005.4 K (2009:

€ 1,360.4 K) and one transaction in Switzerland at € -688.0 K. The change in the value of the forward foreign exchange transactions relates in full to transactions in Poland.

The foreign currency gain/loss from the valuation results from non-realised (non-cash) gains and losses from the valuation of the foreign currency loans designated in USD and CZK at the balance sheet date.

2.1.15. Result from interest derivative transactions The result from interest derivative transactions breaks down as follows:

€ 1,000 2010 2009

Valuation derivative transcations (not realised) – 3,963.4 – 8,870.6 Reclassification from prior years valuations recorded in equity – 378.1 – 19,090.1 Ineffectiveness of swaps – 104.4 – 210.1 Realised result from interest derivative transactions 0.0 – 1,952.4 Result from interest derivative transactions – 4,445.9 – 30,123.2

Interest swaps where the cash flow hedge is terminated prematurely during the financial year is disclosed at fair value as at 31 December of the prior year in "Reclassification from prior years valuation recorded in shareholders’ equity"; the change in valuation during the financial year is disclosed in item "Valuation derivative transactions (non-realised)". FINANCIAL STATEMENTS CONSOLIDATED

151

CONSOLIDATED FINANCIAL STATEMENTS

The item "Valuation derivative (non-realised)" in the amount of € – 3,963.4 K (2009: € – 8,870.6 K) breaks down as follows:

€ 1,000 2010 2009

Valuation cash flow hedges on account of premature termination of cash flow hedge relation 349.6 – 4,942.2 Valuation of interest rate swaps without cash flow hedge relation – 6,703.9 – 3,322.8 Valuation result from counter-swaps 2,479.3 – 605.6 Valuation of interest rate caps – 88.4 0.0 Valuation derivative transactions (not realised) – 3,963.4 – 8,870.6

In order to neutralise the interest risk resulting from interest swaps not based on cash flow hedges, counter-swaps

were entered into in the nominal amount of € 105,350.0 K in the 2009 financial year, and in the nominal amount of

€ 65,000.0 K in the 2010 financial year.

The item "Ineffectiveness of swaps" contains the differences identified in the course of the effectiveness tests as at the

balance sheet date where the effectiveness of the cash flow hedges significantly exceeded 100 %.

2.1.16. Result from financial investments The result from financial investments breaks down as follows:

€ 1,000 2010 2009

Result from securities 3,026.1 – 692.8 Income from bank interest 6,254.8 3,609.7 Interest income from loans to associated companies and joint ventures 3,276.3 3,550.9 Other interest income 1,860.7 2,353.9 14,417.9 8,821.7

For details regarding the recognition of securities see section 2.3.9.

The result from securities in the amount of € 3,026.1 K (2009: € – 692.8 K) breaks down as follows:

€ 1,000 2010 2009

Realised income from securities 1,722.3 – 370.1 Valuation securities (not realised) 1,303.8 – 322.7 Result from securities 3,026.1 – 692.8

152

CONSOLIDATED FINANCIAL STATEMENTS

2.1.17. Income from associated companies The income from associated companies breaks down as follows:

€ 1,000 2010 2009

UBM Realitätenentwicklung AG, Vienna 2,751.5 1,760.0 OAO Avielen AG, St. Petersburg – 3,079.8 – 9,088.9 Isargärten Thalkirchen GmbH & Co. KG, Grünwald 0.0 13.2 – 328.3 – 7,315.7

2.1.18. Non-controlling interests held by limited partners This item includes the proportional results for German minority shareholders, whose investments have been recognized in the statement of financial position as liabilities under the item “Non-controlling interest held by limited partners”.

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

153

CONSOLIDATED FINANCIAL STATEMENTS

2.1.19. Net results from categories The net profits and losses of the items of the financial result broken down by categories are as follows:

€ 1,000 Category 1) 2010 2009

at amortised Interest expenses cost – 92,440.0 – 95,490.2 HTM – 25,006.3 – 12,940.0

Foreign currency gain/loss Valuation HFT 103.2 3,021.3 Realisation HFT 646.1 – 447.8

Interest rate swaps Valuation HFT – 4,253.1 – 27,960.7 CFH – 104.4 – 210.1 Realisation HFT 0.0 – 1,952.4

Interest rate cap Valuation HFT – 88.4 0.0

Securities Valuation FV/P&L 1,303.8 – 322.7 Realisation FV/P&L 1,722.3 – 370.2

Interest income L&R 8,115.5 5,963.7 HTM 3,276.3 3,550.9

Impairment of financial investments HTM – 665.8 – 3,011.3 L&R – 100.0 – 110.4

Income from associated companies AE – 328.3 – 7,315.7

Result from non-controlling interests held by limited at amortised partners cost 244.2 67.3

Financial result – 107,574.9 – 137,528.3

1) FV/P&L At fair value through profit or loss; HFT Held for trading; CFH Cash flow hedge; L&R Loans and receivables; AE At equity; HTM Held to maturity

154

CONSOLIDATED FINANCIAL STATEMENTS

2.1.20. Taxes on income and earnings The tax expenditure breaks down as follows:

€ 1,000 2010 2009

Corporate income tax (actual tax) – 15,444.1 – 25,194.4 Trade tax (actual tax) – 10,452.2 – 13,532.1 Corporate income tax and trade tax (actual tax) – 25,896.3 – 38,726.5 Tax quota 34.2% - Amortisation of adjustment items from intangible assets – 6,843.6 – 14,341.0 Change in deferred tax liabilities (deferred tax) 658.7 49,438.2 Tax income on valuation of derivative transactions 140.5 1,454.9 Tax expense in relation to issue costs for convertible bonds 0.0 – 21.5 Tax income in relation to sale of own shares 0.0 1,997.9 Tax expense – 31,940.7 – 198.0

The taxable income of the CA Immo Group in the 2010 financial year broken down by regions is as follows:

€ 1,000 Austria Germany Eastern/South Total East Europe

Taxable income 25,968.5 88,761.0 10,394.6 125,124.0 Tax losses – 86,151.5 – 25,330.7 – 17,479.2 – 128,961.4 Tax result – 60,183.1 63,430.3 – 7,084.6 – 3,837.4

Corporate income tax and trade tax (actual tax) – 219.9 – 23,553.7 – 2,122.8 – 25,896.3

Tax quota - 37.1% - -

In Austria - with the exception of the minimum corporate income tax - because of the formation of a fiscal corporate group essentially no corporate income tax payments occurred. Without the formation of that corporate group the

CA Immo Group would have been obliged to pay taxes for the current business year in the amount of € 6,490.5 K (2009:

€ 11,123.2 K) for taxable income. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

The current taxes in the amount of € – 25,896.3 K (2009: € – 38,726.5 K) include taxes on income and earnings relating to previous years in the amount of € 2,600.5 K (2009: € – 2,172.0 K).

155

CONSOLIDATED FINANCIAL STATEMENTS

The reasons for the difference between the expected tax expenditure (tax refund) and the effective tax expenditure can be derived from the following table:

€ 1,000 2010 2009

Net result before taxes (EBT) 75,759.4 – 134,521.9

Expected tax expense/income (Corporate income tax rate Austria: 25 % / prior year 25 %) – 18,939.8 33,630.5 Non-usable losses carried forward – 17,652.0 – 17,760.4 Amortisation of investment affecting tax 9,705.5 7,487.8 Amortisation of other intangible items 1) – 6,843.6 – 14,341.0 Non-tax deductible expense and permanent differences – 2,838.9 – 4,872.7 Utilisation of in prior years unrecorded losses carried forward 2,499.8 2,395.0 Differing tax rates abroad 1,749.2 – 9,674.8 Adjustment of preceeding periods 1,697.0 120.2 Exchange rate differences not affecting tax – 1,101.5 531.8 Tax-exempt income 975.2 3,519.9 Change in tax rate 70.6 – 796.7 Trade tax effects 55.3 62.9 Others – 1,317.4 – 500.5 Effective tax expense – 31,940.7 – 198.0

1) Cf. section 2.3.2. Intangible assets

2.2. Other total comprehensive income

The statement of total comprehensive income is - based on the earnings after taxes - reconciled to the total comprehensive income in accordance with IAS 1 and also includes the elements directly recorded in equity.

In the 2010 financial year, the CA Immo Group recorded the following items directly in equity outside profit and loss:

€ 1,000 Valuation Reserves from Reserves from Total 2010 Total 2009 result associates 1) foreign (hedging) currency translation

Other income before taxes – 17,629.7 – 110.0 – 35.7 – 17,775.4 – 5,106.7 Income tax related to other comprehensive income 2,489.7 42.2 0.0 2,531.9 – 1,628.4 Other income – 15,140.0 – 67.8 – 35.7 – 15,243.5 – 6,735.1 thereof: attributable to the owners of the parent – 14,424.8 – 11.3 – 35.7 – 14,471.8 – 5,912.5 thereof: attributable to non- controlling interests – 715.2 – 56.5 0.0 – 771.7 – 822.6

1) The reserves from associates comprises currency translation effects and cash flow hedge valuations.

The reclassifications in the amount of € 378,1 K (2009: € 19.090,1 K) relate to the fair values for cash flow hedges recorded in equity at the balance sheet date of the previous year where the loans on which they are based were repaid prematurely during the 2010 financial year.

156

CONSOLIDATED FINANCIAL STATEMENTS

The item "Reclassification" breaks down as follows:

€ 1,000 2010 2009

Reclassification from prior years valuations recorded in equity 378.1 12,824.4 Cash flow hedges frozen in equity in prior years 0.0 6,265.7 Reclassification 378.1 19,090.1

The reasons for the difference between the expected tax refund and the disclosed refund (tax burden) on the valuation result (hedging) are outlined in the following table:

€ 1,000 2010 2009

Valuation of cash flow hedges – 18,007.8 – 24,630.6 Reclassification swaps 378.1 19,090.1 Valuation results (hedging) – 17,629.7 – 5,540.5

Expected tax income (Corporate income tax rate Austria: 25 % / prior year 25 %) 4,407.4 1,385.1 Not considered tax expense on the valuation of negative interest derivative transactions – 1,010.7 – 1,067.9 Differing tax rates abroad – 740.2 – 1,969.8 Tax rate changes – 166.8 62.8 Effective tax income / tax expense 2,489.7 – 1,589.8

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

157

CONSOLIDATED FINANCIAL STATEMENTS

2.3. Statement of financial position

2.3.1. Long-term investment properties and office furniture, equipment and other assets € 1,000 Long-term properties Total Investment Under Own used Prepayments Office properties development received furniture, equipment and other assets

Market values/acquisition costs As at 1.1.2009 2,520,674.0 1,176,908.5 22,103.0 20,482.5 3,334.9 3,743,502.9 Additions from property acquisitions 229.9 7,278.5 0.0 0.0 0.0 7,508.4 Additions from company acquisitions 0.0 1,448.7 0.0 0.0 0.0 1,448.7 Regular additions 15,621.7 220,849.3 480.0 543.6 313.6 237,808.2 Disposals – 179,347.4 – 175,894.5 – 6,532.4 0.0 – 83.3 – 361,857.6 Reclassification 164,741.2 – 242,514.7 621.6 – 20,482.5 – 1.1 – 97,635.6 Reclassification of properties intended for trading 0.0 – 2,840.50.0 0.0 0.0 – 2,840.5 Reclassification of assets held for sale – 2,155.0 – 3,865.1 0.0 0.0 0.0 – 6,020.1 Revaluation – 110,175.3 – 18,911.2 0.0 0.0 0.0 – 129,086.5 As at 31.12.2009 = 1.1.2010 2,409,589.1 962,459.0 16,672.2 543.6 3,564.1 3,392,828.0 Additions from property acquisitions 7,045.9 0.0 0.0 0.0 0.0 7,045.9 Additions from company acquisitions 34,429.9 0.0 0.0 0.0 0.0 34,429.9 Regular additions 20,723.7 250,974.3 17.2 5,209.9 457.4 277,382.5 Disposals – 37,900.2 – 148,552.1 0.0 – 7.2 – 42.0 – 186,501.5 Reclassification 281,884.4 – 276,047.8 0.0 – 5,746.3 – 134.2 – 43.9 Reclassification of assets held for sale – 336.0 – 44,461.9 0.0 0.0 0.0 – 44,797.9 Revaluation 774.4 45,941.7 0.0 0.0 0.0 46,716.1 Foreign currency gains/losses 0.0 268.8 0.0 0.0 0.0 268.8 As at 31.12.2010 2,716,211.2 790,582.0 16,689.4 0.0 3,845.3 3,527,327.9

Accumulated depreciation As at 1.1.2009 0.0 – 97,087.1 – 2,653.4 0.0 – 901.2 – 100,641.7 Disposals 0.0 0.0 569.5 0.0 43.9 613.4 Reclassification 0.0 97,087.1 548.3 0.0 0.1 97,635.5 As at 31.12.2009 = 1.1.2010 0.0 0.0 – 2,424.3 0.0 – 1,624.7 – 4,049.0 Disposals 0.0 0.0 0.0 0.0 25.7 25.7 Reclassification 0.0 0.0 0.0 0.0 60.7 60.7 As at 31.12.2010 0.0 0.0 – 3,114.7 0.0 – 2,207.0 – 5,321.7

Book value as at 1.1.2009 2,520,674.0 1,079,821.4 19,449.6 20,482.5 2,433.7 3,642,861.2 Book value as at 31.12.2009 = 1.1.2010 2,409,589.1 962,459.0 14,247.9 543.6 1,939.4 3,388,779.0 Book value as at 31.12.2010 2,716,211.2 790,582.0 13,574.7 0.0 1,638.3 3,522,006.2

158

CONSOLIDATED FINANCIAL STATEMENTS

The additions from property acquisitions relate to real estate in Berlin.

The additions from company acquisitions include the acquisition of a real estate company in Sofia.

The current capital expenditure for existing investment properties under development primarily relates to the "Tower

185" project (€ 135,033.5 K) and the "Nord 1" project (€ 36,803.4 K) in Frankfurt, as well as projects in Berlin, Frankfurt, Munich, Warsaw and Sibiu. The capital expenditure for existing properties mainly results from the redesign of a shopping centre in Vienna, the remodelling of a parking garage in Cologne, the revitalisation of property in Budapest, and lessees' extensions in Berlin and Warsaw.

The disposals mainly relate to the sale of the completed "Nord 1" project (€ 82,385.0 K) in Frankfurt, the sale of two construction plots in Basle and of several construction plots in Berlin, the deconsolidation of the "Maslov" project in Moscow, and various sales transactions in Austria.

As at 31.12.2010, the CA Immo Group discloses long-term assets classified as "held for sale" in accordance with IFRS 5 (see item 2.3.6).

The book value of the properties assigned as collateral for long-term external financings totals € 2,850,722.8 K (31.12.2009: € 2,280,464.9 K) of which € 180,854.0 K (31.12.2009: € 145,974.2 K) relate to joint ventures.

In the 2010 financial year, a total of € 6,851.3 K (2009: € 4,142.5 K) in borrowing costs were recognised at a weighted

average interest rate of 4.12 % (2009: 2.55 %) on the acquisition cost for the construction of properties.

2.3.2. Intangible assets The item "Other intangible assets" equals the difference from the attribution of the cost to the fair values of the acquired properties and the related non-discounted deferred tax liabilities as per IAS 12. As regards content, it represents the benefit resulting from the later due date of the assumed deferred tax liabilities and is written off based on the maturity or in full upon sale and recorded in tax expense. Due to the decrease in the market values of the properties, im-

pairment losses were recorded in the amount of € -1,001.9 K (2009: € -5,542.0 K) on tax adjustment items. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

159

CONSOLIDATED FINANCIAL STATEMENTS

€ 1,000 Software Others Total

Acquisition costs As at 1.1.2009 542.3 68,608.7 69,151.0 Additions 303.9 3,320.7 3,624.6 Disposals 0.0 – 3,565.9 – 3,565.9 As at 31.12.2009 = 1.1.2010 846.2 68,363.5 69,209.7 Additions 232.9 237.0 469.9 Disposals 0.0 – 1,497.4 – 1,497.4 As at 31.12.2010 1,079.1 67,103.1 68,182.2

Accumulated depreciation As at 1.1.2009 – 317.0 – 15,442.5 – 15,759.5 Depreciation and amortisation – 181.4 – 14,341.0 – 14,522.3 Disposals 0.0 601.3 601.3 As at 31.12.2009 = 1.1.2010 – 498.4 – 29,182.2 – 29,680.6 Depreciation and amortisation – 207.6 – 6,843.7 – 7,051.3 Disposals 0.0 17.2 17.2 As at 31.12.2010 – 706.0 – 36,008.7 – 36,714.7

Book value as at 1.1.2009 225.3 53,166.2 53,391.5 Book value as at 31.12.2009 = 1.1.2010 347.8 39,181.3 39,529.1 Book value as at 31.12.2010 373.1 31,094.4 31,467.5

2.3.3. Financial assets

€ 1,000 IAS 39 Acquisition Changes in Changes in the Book value Book value category 1) costs value - value as at as at 31.12.2010 recognised in accumulated 31.12.2010 31.12.2009 profit or loss 31.12.2010

Shares in joint ventures AC 0.9 – 0.9 – 0.9 0.0 0.0 Loans to joint ventures HTM 27,068.2 – 15,925.5 – 15,925.8 11,142.4 24,983.4 Loans to associated companies HTM 18,296.4 1,183.1 – 3,745.5 14,550.9 11,867.8 Other loans HTM 0.0 0.0 0.0 0.0 40.0 Total HTM 45,364.6 – 14,742.4 – 19,671.3 25,693.3 36,891.2 Investments in associated companies AE 59,922.1 – 328.3 – 22,826.1 37,096.0 38,242.1 Other financial assets AE 7.3 0.0 0.0 7.3 7.3 Total AE 59,929.4 – 328.3 – 22,826.1 37,103.3 38,249.4 Prepayments made on investments in properties L&R 141,422.8 – 100.0 – 5,222.8 136,200.0 200.0 Other financial assets (interest rate caps) HFT 32.0 – 30.7 – 30.7 1.3 0.0 Total 246,749.7 – 15,202.3 – 47,751.8 198,997.9 75,340.6

1) HTM Held to maturity; AE At equity; L&R Loans and receivables; HFT Held for trading, AC At cost

The disclosed book value of the financial assets equals their fair value.

The decrease in loans to joint ventures is primarily the result of the deconsolidation of companies in Eastern/South East Europe.

160

CONSOLIDATED FINANCIAL STATEMENTS

The investments in associated companies break down as follows:

€ 1,000 31.12.2010 31.12.2009

UBM Realitätenentwicklung AG, Vienna 33,739.2 31,805.6 OAO Avielen AG, St. Petersburg 3,334.6 6,414.3 Isargärten Thalkirchen GmbH & Co. KG, Grünwald 22.2 22.2 37,096.0 38,242.1

The share price of UBM Realitätenentwicklung AG, Vienna, was at € 32.01 as at 31.12.2010 (31.12.2009: € 29.90).

Hence, the stock market value of 750,004 shares amounted to € 24,007.6 K (31.12.2009: € 22,425.1 K).

The item "Prepayments made on investments in properties" relates to contracts with the closing to be effected at a later point in time. As at 31.12.2010, this item includes - just like in the previous year - the prepayment made on a project company in Prague (forward purchase), on the one hand; the CA Immo Group has cancelled this contract. On

the other hand, this item comprises the first purchase price instalment in the amount of € 136,000.0 K for the acquisition of Europolis AG, Vienna, the closing of which was in January 2011 (see item 2.5.11.1.).

The disclosed interest cap relates to maximum interest contractually agreed-upon in Germany. Since the financial assets could not be broken down reliably by maturities during the remaining term, the financial assets were not broken down into short-term and long-term assets. The interest cap is recognised in the amount equalling the fair value of the financial assets (see item 2.5.1.).

2.3.4. Long-term receivables and other assets The long-term receivables and other assets break down as follows:

€ 1,000 IAS 39 Classes Book value = Book value = category 1) market value market value 31.12.2010 31.12.2009

Cash and cash equivalents with drawing restrictions L&R Other receivables 7,260.1 0.0 Receivables from property sales L&R Other receivables 4,000.1 0.0 Positive market value of derivative financial instruments (hedge accounting) FVD Derivatives 2,175.3 0.0 Net position plan assets from pensions obligations L&R Other receivables 1,937.9 0.0 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Receivables and other assets 15,373.4 0.0 of which: L&R 13,198.1 0.0 of which: FVD 2,175.3 0.0

1) FVD Fair value derivate, L&R Loans and receivables

Cash and cash equivalents that are subject to restrictions of availability and that fall due within more than 12 months are disclosed as long-term receivables.

The receivables from the disposal of real estate relate to receivables from the sale of long-term investment properties that - at the balance sheet date - fall due within more than 12 months.

In 2010, the receivables from derivatives exclusively comprise the positive fair value of the interest swaps entered into in 2009 that serve as a counter-item for the existing interest swaps and are classified as fair value derivatives.

161

CONSOLIDATED FINANCIAL STATEMENTS

The fair values of the derivative transactions were broken down by maturities based on the expiration date of the derivatives.

Net item plan assets from pension obligations The CA Immo Group obtained a reinsurance policy for pension obligations (= plan assets).

In the balance sheet, the plan assets are disclosed in long-term receivables and other assets to the extent that the plan assets exceed the present value of the future obligations of the CA Immo Group and the Group, therefore, is entitled to future claims.

€ 1,000 31.12.2010 31.12.2009 31.12.2008

Cash value of obligation – 4,083.8 – 3,032.8 – 2,343.2 Fair value of plan asset 6,021.7 5,965.9 2,343.2 Net position recorded in consolidated statement of financial position 1,937.9 2,933.1 0.0

In the 2009 financial year, the last contribution to the plan assets was made in order to balance a deficit in the claims of future beneficiaries. No additional contributions are intended in the following financial years.

The pension obligations and plan assets developed as follows:

€ 1,000 2010 2009 2008

Scope of obligation as at 1.1. 3,032.8 2,343.2 2,715.7 Adjustment to obligation 0.0 328.6 0.0 Service cost 64.5 65.9 65.9

Interest expenses (2010: 4.5 %; 2009: 5.87 %, 2008: 5.32 %) 171.4 156.8 144.5 Actuarial gains/losses 815.1 138.3 – 582.9 Scope of obligation as at 31.12. 4,083.8 3,032.8 2,343.2 Plan asset as at 1.1. 5,965.9 2,343.2 2,715.7 Adjustment to plan assets 0.0 3,206.1 0.0 Forecast income from plan asset 358.0 160.3 210.4 Actuarial losses/gains – 215.7 12.6 – 582.9 Outpayments – 86.5 0.0 0.0 Payments received 0.0 243.7 0.0 Plan asset as at 31.12. 6,021.7 5,965.9 2,343.2

Due to the changes in the parameters, the pension obligations and plan assets were adjusted in the previous year.

162

CONSOLIDATED FINANCIAL STATEMENTS

The following expense was recorded in profit and loss:

€ 1,000 2010 2009 2008

Service cost – 64.5 – 65.9 – 65.9 Interest expenses – 171.4 – 156.8 – 144.5 Forecast income from plan asset 358.0 160.3 210.4 Actuarial losses/gains from pension obligation – 815.1 – 138.3 582.9 Actuarial losses/gains from plan asset – 215.7 12.6 – 582.9 Pensions costs – 908.7 – 188.1 0.0

The service cost and the actuarial gains and losses related to the pension obligations are recorded in staff expenses, i.e. in indirect expenditures. The interest expense, the actuarial gains and losses related to the plan assets, as well as the expected income from plan assets are included in the financial result.

2.3.5. Deferred tax assets The deferred taxes on temporary differences between the values in the consolidated balance sheet and the respective values for tax purposes broken down into the individual financial positions as follows:

€ 1,000 31.12.2010 31.12.2009

Deferred tax assets Intangible assets 0.8 24.4 Office furniture, equipment and other assets 772.2 901.9 Financial assets 5.5 0.0 Property intended for trading 808.6 0.0 Receivables and other assets 5,163.8 1,388.9 Cash and cash equivalents 72.0 11.9 Trade creditors 37,418.7 25,453.8 44,241.6 27,780.9 Deferred tax liabilities Long-term property assets 150,084.4 147,378.0 Assets held for sale 7,757.0 1,079.0 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Property intended for trading 0.0 2,877.9 Provisions 27,341.9 14,509.5 185,183.3 165,844.4

Value adjustments for deferred tax – 9,529.0 – 5,977.0 Deferred taxes on losses carried forward 48,446.5 38,858.8

Tax deferral (net) – 102,024.2 – 105,181.7 thereof deferred tax assets 14,133.3 24,606.3 thereof deferred tax liabilities 116,157.5 129,788.0

163

CONSOLIDATED FINANCIAL STATEMENTS

The deferred tax assets developed as follows:

€ 1,000 2010 2009

Deferred taxes as at 1 January (net) – 105,181.7 – 150,196.4 Change due to company acquisitions purchase price arrears – 237.0 – 4,388.1 Change due to sale of companies 0.0 1,406.7 Change due to exchange rate fluctuations 105.6 – 150.4 Changes recognised in equity 2,630.2 – 1,291.7 Changes recognised in the income statement 658.7 49,438.2 Deferred taxes as at 31 December (net) – 102,024.2 – 105,181.7

Deferred taxes were recognised on losses carried forward to the extent that it more likely than not that they will be used within the following five to seven years. The basis for the recognised deferred taxes on losses carried forward amounts to € 212,433.0 K (31.12.2009: € 158,172.6 K). The value of the deferred taxes is derived from the available budgeting that shows that the tax loss carryforwards will be used in the near future, on the one hand, and the existence of a sufficient amount of taxable temporary differences that primarily result from investment properties, on the other hand.

The non-capitalised deferred taxes on losses carried forward amount to € 81,345.4 K (31.12.2009: € 60,522.7 K). The

loss carryforwards for which no deferred taxes were recognised total € 351,059.8 K (31.12.2009: € 247,087.9 K); they are forfeited after the following periods:

year 2010 2009

2010 0.0 169.0 2011 1,119.0 13,903.5 2012 2,215.1 2,600.6 2013 2,833.4 4,998.6 2014 5,797.4 1,487.6 2015 13,198.2 2,885.4 2016 1,580.3 816.4 2017 4,064.2 276.2 2018 15,283.7 9,894.9 2019 16,173.4 2.9 2020 83.5 0.0 Without limitation in time 288,711.6 210,052.9 Sum total unrecorded losses carried forward 351,059.8 247,087.9 thereof: non-capitalised deferred taxes 81,345.4 60,522.7

The temporary differences related to investments in affiliated companies, joint ventures and associated companies for which no deferred tax liabilities were recorded pursuant to IAS 12.39 are as follows:

The temporary differences related to investments in Austrian affiliated companies, joint ventures and associated

companies for which no deferred taxes were recorded pursuant to IAS 12.39 amount to € 7,601.5 K. Loss carryforwards

of the Austrian companies that were not recognised amount to € 131,866.1 K (incl. € 36,364.4 K of depreciation of the seventh part that has not yet been recognised for tax purposes).

164

CONSOLIDATED FINANCIAL STATEMENTS

Temorary differences relating to foreign affiated companies, joint ventures and associated companies, for which no

deferred taxes have been recognised according to IAS 12.39, amount to € 1.253,2 K. Non-capitalized loss carryforwards of foreign entities amount to € 219,193.7K. When fulfilling special requirements, gains from the disposal of investments in a foreign company are partially or completely exempted from income taxes.

2.3.6. Assets held for sale and liabilities related thereto The assets held for sale and the liabilities related thereto comprise the individual assets held for sale and groups of assets held for sale.

The actual transfer of risks and rewards to the purchaser is expected to occur within 12 months of reclassification. The respective purchase agreements have already been entered into during the business year or during drawing up the financial statements.

In the individual segments the amount disclosed is broken down by regions and sectors.

2.3.6.1. Individual assets held for sale As at 31.12.2010, properties at a fair value of € 41,496.0 K (31.12.2009: € 6,020.1 K) were classified as assets held for sale. This includes four properties under development in Germany, one property under development in Switzerland, and two investment properties in Austria.

The individual assets held for sale are as follows:

€ 1,000 31.12.2010 31.12.2009

BelsenPark Oberkassel, Düsseldorf 22,610.0 0.0 Europaallee Süd 1, Frankfurt 13,600.0 0.0 Idsteiner Straße, Frankfurt 2,320.0 0.0 Erlenmatt - Shoppingcenter Multidevelopment, Basle 1,580.0 0.0

Hallesches Ufer 68 - 72, Berlin 1,050.0 0.0 Göss / Kudlichstraße, Leoben 206.0 0.0 Landschachergasse / Wiese, Knittelfeld 130.0 0.0 Praterstraße 10/Ferdinandstraße 1, Vienna 0.0 1,975.1 Süd 7 Europaallee, Frankfurt 0.0 1,890.0 Ämtergebäude Bahnhof, Münster 0.0 1,815.0

Hallesches Ufer, Berlin 0.0 340.0 FINANCIAL STATEMENTS CONSOLIDATED Properties held for sale 41,496.0 6,020.1

The gain from the sale of the properties classified pursuant to IFRS 5 totals € 764.0 K and is disclosed under "Result from the sale of long-term properties" in the income statement.

€ 130.0 K (31.12.2009: € 0.0 K) of the properties classified pursuant to IFRS 5 are mortgaged as a collateral for loan liabilities.

165

CONSOLIDATED FINANCIAL STATEMENTS

2.3.6.2. Disposal groups As at 31.12.2010, the assets and liabilities of two companies in Eastern/South East Europe were reclassified and attributed to groups of assets. The major groups of assets and liabilities classified as held for sale are as follows:

€ 1,000 31.12.2010 31.12.2009

Investment properties under development 3,301.9 0.0 Property intended for trading 1,250.0 0.0 Receivables and other assets 386.8 0.0 Cash and cash equivalents 74.2 0.0 Assets in disposal groups held for sale 5,012.9 0.0

Provisions 55.1 0.0 Financial liabilities 5,611.0 0.0 Trade creditors 6.9 0.0 Other liabilities 180.6 0.0 Liabilities related to disposal groups held for sale 5,853.6 0.0

Net-liabilities included in disposal groups – 840.7 0.0

Properties under development at a book value of € 1,250.0 K (31.12.2009: € 0.0 K) and properties intended for trading at a book value of € 1,250.0 K (31.12.2009: € 0.0 K) are mortgaged as a collateral for loan liabilities.

166

CONSOLIDATED FINANCIAL STATEMENTS

2.3.7. Properties intended for trading € 1,000

Acquisition / production cost As at 1.1.2009 182,796.1 Additions 24,477.5 Disposals – 66,263.5 Reclassification 2,840.5 As at 31.12.2009 = 1.1.2010 143,850.6 Additions 7,383.5 Disposals – 92,192.1 Reclassification3) – 6,350.4 As at 31.12.2010 52,691.6

Accumulated depreciation As at 1.1.2009 – 14,446.0 Impairment1) – 8,555.4 Reversal of write-down2) 544.5 Disposals 1,508.8 As at 31.12.2009 = 1.1.2010 – 20,948.2 Impairment1) – 2,155.8 Reversal of write-down2) 926.1 Disposals 9,724.9 Reclassification3) 5,100.4 As at 31.12.2010 – 7,352.6

Book value as at 1.1.2009 168,350.1 Book value as at 31.12.2009 = 1.1.2010 122,902.4 Book value as at 31.12.2010 45,339.0

1) thereof € -393.0 K (2009: € -734.9 K) related to properties intended for trading that were measured during the financial year and had been sold by the balance sheet date (see item 2.1.10.) 2) thereof € 866.1 K (2009: € 0.0 K) related to properties intended for trading that were measured during the financial year and had been sold by the balance sheet date (see item 2.1.11.) 3) The reclassificiation includes the reclassification of a property in Slovakia to the group of assets pursuant to IFRS 5 (see item 2.3.6.) CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

This item comprises properties of the Vivico Group in Germany (31.12.2009: incl. one property in Slovakia).

Properties intended for trading in the amount of € 20,909.9 K (31.12.2009: € 20,100.0 K) are expected to be realised within more than 12 months. This applies to 18 real estates in Germany.

€ 8,148.2 K (31.12.2009: € 1,250.0 K) of the properties intended for trading are mortgaged as a collateral for loan liabilities.

In the 2010 financial year, a total of € 89.5 K (2009: € 141.8 K) in borrowing costs were recognised at a weighted aver-

age interest rate of 3.51 % (2009: 1.49 %) on the acquisition cost for properties intended for trading.

167

CONSOLIDATED FINANCIAL STATEMENTS

The properties intended for trading break down by valuation method as follows:

€ 1,000 Acquisition / Accumulated Book value as at production cost impairment 31.12.2010

At production costs 30,047.8 0.0 30,047.8 At realisable value 22,643.8 – 7,352.6 15,291.2 Total properties intended for trading 52,691.6 – 7,352.6 45,339.0

Properties intended for trading which are recorded at acquisition/production cost contain undisclosed reserves to the

amount of € 8,625.0 K (31.12.2009: € 23,422.6 K).

2.3.8. Short-term receivables and other assets The short-term receivables and other assets break down as follows:

€ 1,000 IAS 39 category 1) Classes book value = book value = market value market value 31.12.2010 31.12.2009

Trade debtors, Receivables from joint ventures L&R other receivables 38,635.9 40,034.4 Cash and cash equivalents with drawing restrictions L&R Other receivables 36,311.5 24,374.7 Receivables from warranty L&R Other receivables 19,774.2 18,040.2 Receivables from fiscal authorities Non-FI Other receivables 13,313.3 12,213.0 Receivables from property sales L&R Other receivables 11,329.8 26,503.8 Trade debtors L&R Trade debtors 8,035.3 8,905.1 Trade debtors from further charging L&R Other receivables 6,133.6 385.4 Loans granted L&R Other receivables 5,063.5 3,234.5 Trade debtors (Other) L&R Trade debtors 3,648.6 8,078.9 Other receivables and assets L&R, Non-FI, FVD Other receivables 4,773.5 7,555.0 Receivables and other assets 108,383.3 109,290.6

Total receivables and other assets 147,019.2 149,325.0 of which: L&R 132,919.5 134,725.4 of which: FVD 11.6 807.1 of which: Non-FI 14,088.1 13,792.5

1) L&R Loans and receivables; FVD Fair value derivative; Non-FI Non-financial instrument

The other trade debtors include receivables from the sale of properties intended for trading and receivables from commissioned work (PoC) and development consulting.

The receivables from the property sales relate to the receivables from the sale of property assets that fall due within one year.

The receivables from warranty include receivables due from sellers of property companies in Germany that are not yet due.

Cash and cash equivalents with drawing restrictions that fall due within three months to one year are disclosed as short-term receivables and other assets.

168

CONSOLIDATED FINANCIAL STATEMENTS

Aging of short-term receivables and other assets 31.12.2010 not due overdue Total

181 - 360

Nominale values of receivables < 30 days 31 - 180 days days > 1 year Receivables from joint ventures 38,635.9 0.0 0.0 0.0 0.0 38,635.9 Trade debtors 4,314.6 2,311.1 4,231.1 1,612.1 3,166.8 15,635.7 Trade debtors (Other) 712.8 1,945.8 385.1 161.8 559.4 3,764.9 Receivables from warranty 19,774.2 0.0 0.0 0.0 0.0 19,774.2 Cash and cash equivalents with drawing restrictions 36,311.5 0.0 0.0 0.0 0.0 36,311.5 Receivables from fiscal authorities 12,465.6 532.2 404.8 0.0 387.4 13,790.0 Receivables from property sales 10,914.3 0.0 0.0 216.8 915.9 12,047.0 Loans granted 7,162.5 0.0 0.0 0.0 0.0 7,162.5 Trade debtors from further charging 5,496.1 695.3 0.0 0.0 0.0 6,191.4 Other receivables and assets 4,544.5 26.5 92.3 26.1 99.3 4,788.7 As at 31.12.2010 140,332.0 5,510.9 5,113.3 2,016.8 5,128.8 158,101.8

not due overdue Total

181 - 360

Value adjustment for receivables < 30 days 31 - 180 days days > 1 year Trade debtors – 208.1 – 530.2 – 2,462.4 – 1,370.0 – 3,029.7 – 7,600.4 Trade debtors (Other) 0.0 0.0 0.0 0.0 – 116.3 – 116.3 Receivables from fiscal authorities – 476.7 0.0 0.0 0.0 0.0 – 476.7 Receivables from property sales 0.0 0.0 0.0 0.0 – 717.2 – 717.2 Loans granted – 2,099.0 0.0 0.0 0.0 0.0 – 2,099.0 Trade debtors from further charging 0.0 – 57.8 0.0 0.0 0.0 – 57.8 Other receivables and assets 0.0 0.0 0.0 0.0 – 15.2 – 15.2 As at 31.12.2010 – 2,783.8 – 588.0 – 2,462.4 – 1,370.0 – 3,878.4 – 11,082.6

not due overdue Total

181 - 360

Book values of receivables < 30 days 31 - 180 days days > 1 year Receivables from joint ventures 38,635.9 0.0 0.0 0.0 0.0 38,635.9 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Trade debtors 4,106.5 1,780.9 1,768.7 242.1 137.1 8,035.3 Trade debtors (Other) 712.8 1,945.8 385.1 161.8 443.1 3,648.6 Receivables from warranty 19,774.2 0.0 0.0 0.0 0.0 19,774.2 Cash and cash equivalents with drawing restrictions 36,311.5 0.0 0.0 0.0 0.0 36,311.5 Receivables from fiscal authorities 11,988.9 532.2 404.8 0.0 387.4 13,313.3 Receivables from property sales 10,914.3 0.0 0.0 216.8 198.7 11,329.8 Loans granted 5,063.5 0.0 0.0 0.0 0.0 5,063.5 Trade debtors from further charging 5,496.1 637.5 0.0 0.0 0.0 6,133.6 Other receivables and assets 4,544.5 26.5 92.3 26.1 84.1 4,773.5 As at 31.12.2010 137,548.2 4,922.9 2,650.9 646.8 1,250.4 147,019.2

169

CONSOLIDATED FINANCIAL STATEMENTS

31.12.2009 not due overdue Total

181 - 360

Nominale values of receivables < 30 days 31 - 180 days days > 1 year Receivables from joint ventures 40,034.4 0.0 0.0 0.0 0.0 40,034.4 Trade debtors 4,995.2 2,770.8 2,447.8 1,023.9 1,497.8 12,735.5 Trade debtors (Other) 8,074.9 4.3 114.7 0.0 0.1 8,194.0 Receivables from warranty 18,040.2 0.0 0.0 0.0 0.0 18,040.2 Receivables from property sales 26,494.4 0.0 0.0 0.0 925.2 27,419.6 Cash and cash equivalents with drawing restrictions 24,374.7 0.0 0.0 0.0 0.0 24,374.7 Receivables from fiscal authorities 12,739.7 9.8 20.3 50.3 0.4 12,820.5 Loans granted 3,589.4 0.0 0.0 0.0 0.0 3,589.4 Trade debtors from further charging 385.4 0.0 0.0 0.0 0.0 385.4 Other receivables and assets 7,087.5 186.2 72.9 159.7 57.5 7,563.8 As at 31.12.2009 145,815.8 2,971.1 2,655.7 1,233.9 2,481.0 155,157.5

not due overdue Total

181 - 360

Value adjustment for receivables < 30 days 31 - 180 days days > 1 year Trade debtors – 108.1 – 942.2 – 666.1 – 671.0 – 1,443.0 – 3,830.4 Trade debtors (Other) – 40.1 0.0 – 75.0 0.0 0.0 – 115.1 Receivables from property sales – 0.3 0.0 0.0 0.0 – 915.5 – 915.8 Receivables from fiscal authorities – 590.2 0.0 – 4.8 – 12.5 0.0 – 607.5 Loans granted – 354.9 0.0 0.0 0.0 0.0 – 354.9 Other receivables and assets 0.0 0.0 0.0 0.0 – 8.8 – 8.8 As at 31.12.2009 – 1,093.6 – 942.2 – 745.9 – 683.5 – 2,367.3 – 5,832.5

not due overdue Total

181 - 360

Book values of receivables < 30 days 31 - 180 days days > 1 year Receivables from joint ventures 40,034.4 0.0 0.0 0.0 0.0 40,034.4 Trade debtors 4,887.1 1,828.6 1,781.7 352.9 54.8 8,905.1 Trade debtors (Other) 8,034.8 4.3 39.7 0.0 0.1 8,078.9 Receivables from warranty 18,040.2 0.0 0.0 0.0 0.0 18,040.2 Receivables from property sales 26,494.1 0.0 0.0 0.0 9.7 26,503.8 Cash and cash equivalents with drawing restrictions 24,374.7 0.0 0.0 0.0 0.0 24,374.7 Receivables from fiscal authorities 12,149.5 9.8 15.5 37.8 0.4 12,213.0 Loans granted 3,234.5 0.0 0.0 0.0 0.0 3,234.5 Trade debtors from further charging 385.4 0.0 0.0 0.0 0.0 385.4 Other receivables and assets 7,087.5 186.2 72.9 159.7 48.7 7,555.0 As at 31.12.2009 144,722.2 2,028.9 1,909.8 550.4 113.7 149,325.0

170

CONSOLIDATED FINANCIAL STATEMENTS

Change in value adjustments: € 1,000 2010 2009

As at 1.1. 5,832.5 2,308.1 Appropriation (value adjustment expenses) 6,470.0 4,130.7 Disposal deconsolidation – 292.4 0.0 Use – 432.8 – 307.1 Release – 525.4 – 283.1 Interest income from impaired financial assets – 8.5 – 11.4 Foreign currency gains/losses 39.2 – 4.8 As at 31.12. 11,082.6 5,832.5

2.3.9. Securities As at 31.12.2010 and as at 31.12.2009 the ABS fund represents the only investment of the CA Immo Group in securi-

ties. In the current business year shares in the ABS fund were sold, resulting in a gain of € 1,722.3 K (2009: loss of € 370.1 K).

The acquisition cost of the securities as at 31.12.2010 amounted to € 3,948.6 K (31.12.2009: € 10,760.7 K). In 2010 the "Result from financial investments" contains a valuation gain of € 1,303.8 K (31.12.2009: loss of € 322.7 K).

The following securities are held by the CA Immo Group:

31.12.2010 31.12.2009 pcs. € 1,000 pcs. € 1,000

ABS Dynamic Cash 433 3,853.5 1,180 6,948.2

2.3.10. Cash and cash equivalents

€ 1,000 31.12.2010 31.12.2009

Credit balances with banks 344,035.2 485,104.8 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Bank balances subject to drawing restrictions 10,707.8 12,062.5 Cash on hand 20.8 32.0 354,763.8 497,199.3

Bank balances subject to drawing restrictions comprise bank balances to which the CA Immo Group has limited ac-

cess only. The bank balances subject to drawing restrictions include an amount of € 10,707.8 K (31.12.2009:

€ 12,062.5 K) that serves the purpose of securing current loan liabilities (repayment and interest). The Group cannot access the funds any other way without the express approval of the lenders. The amounts fall due within less than three months.

2.3.11. Shareholders' equity The share capital equals the fully paid in nominal capital of CA Immobilien Anlagen Aktiengesellschaft of € 638,713,556.20 (31.12.2009: € 634,370,022.00). It is divided into 87,856,056 (31.12.2009: 87,258,596) registered shares of no par value and 4 registered bearer shares of no par value. The registered shares are held by UniCredit Bank

171

CONSOLIDATED FINANCIAL STATEMENTS

Austria AG, Vienna, and grant the right to nominate one member of the Supervisory Board each. This right has not been exercised. All members of the Supervisory Board were elected by the General Meeting.

By way of merger agreement dated 27 September 2010, CA Immo International AG, Vienna, was merged onto CA Immobilien Anlagen Aktiengesellschaft retrospectively 31.12.2009, i.e. the balance sheet date. In order to perform the merger, CA Immobilien Anlagen Aktiengesellschaft increased its share capital from € 634,370,022.00 by € 4,343,534.20 to € 638,713,556.20 by issuing 597,460 new registered shares of no par value. The conversion ratio was 19:10. The shares were issued at a pro rata amount of the share capital of € 7.27. The portion of the assets of CA Immo International AG not related to the shares held by CA Immobilien Anlagen Aktiengesellschaft was credited to the capital increase as a contribution in kind.

Due to the merger of CA Immo International AG, Vienna, onto CA Immobilien Anlagen Aktiengesellschaft, the shares not held by CA Immobilien Anlagen Aktiengesellschaft in CA Immo International AG, Vienna, until that date are no longer disclosed under "Non-controlling interests" after the effective date of the merger. As of that date, they become shareholders of the (merged) CA Immobilien Anlagen Aktiengesellschaft, and thus are disclosed in "Share capital" and "Capital reserves".

In November 2009, a 5-year convertible bond with a volume of € 135,000.0 K was issued. The coupon of the covertible

bond payable every six months was fixed at 4.125 %, the conversion price at € 11.5802. Hence, upon exercising of the conversion right, if any, no more than 11,657,829 registered shares of no par value may be issued. According to the terms and conditions applicable to the issuance of the convertible bond, the creditors have the right to convert their bond at any time (i.e. also prior to the expiration date of the bond in 2014) into shares in CA Immobilien Anlagen Akti- engesellschaft at the conversion price. At the balance sheet date, the share price of the CA Immo share amounted to € 11.91 and thus exceeded the conversion price. No bond had been submitted for conversion by the balance sheet date.

The tied capital reserves disclosed in the individual financial statements of CA Immobilien Anlagen Aktiengesell-

schaft totals € 820,184.3 K (31.12.2009: € 868,545.0 K). In accordance with the resolution of the Management Board

dated 23 February 2011 free reserves in the amount of € 6,276.9 K and the tied capital reserves in the amount of

€ 53,046.1 K were reversed in the order prescribed by law in accordance with Sec. 229 para. 7 Austrian UGB (Austrian Corporate Code) in order to balance out a net loss in the 2010 business year that would otherwise have been shown in the individual financial statements of the parent company.

As at the reporting date of 31.12.2010 there is an unused authorised capital in the amount of € 312,841,476.80 that can be utilised on or before 8 August 2012, as well as a conditional capital in the amount of € 317,185,011.00.

172

CONSOLIDATED FINANCIAL STATEMENTS

2.3.12. Provisions

€ 1,000 Actual taxes Staff Others Total

As at 1.1.2010 82,292.0 3,771.9 53,833.1 139,897.0 Use – 43,615.6 – 1,372.4 – 29,666.3 – 74,654.3 Release – 1,168.7 – 1,151.0 – 6,663.2 – 8,982.9 Allocation 22,385.4 3,735.8 42,593.2 68,714.4 Addition from first-time consolidation 2.5 0.0 32.8 35.3 Disposal from deconsolidation 0.0 0.0 – 157.9 – 157.9 Reclassification 1) 0.0 307.8 – 363.9 – 56.1 Foreign currency gains/losses – 2.1 0.0 148.0 145.9 As at 31.12.2010 59,893.5 5,292.1 59,755.8 124,941.4 thereof: short-term 59,893.5 4,335.9 54,473.4 118,702.8 thereof: long-term 0.0 956.2 5,282.4 6,238.6

1) The total reclassification results from the reclassification of debt items into "Debt relating to assets held for sale".

The provision for actual taxes includes the amount of € 58,821.5 K (31.12.2009: € 79,705.1 K) related to the Vivico Group and comprises corporate income tax and trade tax for the years 2008 to 2010 that have not been finally assessed, as well as potential risks from a current tax audit in Germany covering the years 2001 to 2006. A provision for actual

taxes was recorded in respect to a tax audit completed in Austria for the years 2004 to 2007 in the amount of € 150.8 K.

The provision for staff primarily comprises the cash value of the long-term obligations for settlement payments to em-

ployees in the amount of € 642.2 K (31.12.2009: € 522.4 K), premiums in the amount of € 3,633.1 K (31.12.2009:

€ 1,413.8 K), compensations in the amount of € 219.5 K (31.12.2009: € 875.5 K), and unused holiday entitlements in the

amount of € 687.8 K (31.12.2009: € 953.0 K€). The provision for premiums comprises a long-term provision for the LTI-

(long-term incentive) programme in the amount of € 314.0 K (31.12.2009: € 0.0 K) that was endowed in the 2010 business year. The LTI-programme sets forth a payment after the expiration of three years.

The cash value of severance payment obligations developed as follows:

€ 1,000 2010 2009 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

Provisions for severance payments Cash value of severance payment obligations as at 1.1 522.4 560.1 Use 0.0 – 99.1 Service cost 96.3 39.0 Interest expenses 23.5 22.4 Cash value of severance payment obligations as at 31.12 642.2 522.4

The service cost is included in the staff expenses and thus in the indirect expenditures. The interest expense is included in the financial result.

173

CONSOLIDATED FINANCIAL STATEMENTS

There are performance-based pension plans for four persons at the Vivico Group; a reinsurance policy was obtained for the pension obligations. Since the plan assets at the balance sheet date exceed the cash value of the pension obliga-

tions, the net item in the amount of € 1,937.9 K (31.12.2009: € 2,933.1 K) is disclosed under long-term receivables and other assets (see Point 2.3.4.).

The following table shows the composition of other significant provisions:

€ 1,000 31.12.2010 31.12.2009

Construction services 26,576.8 25,475.1 Subsequent costs of sold properties 14,459.6 9,519.9 Conveyance duty and registration fees 4,522.3 4,686.9 Warranty and technical risks from sales 3,774.1 4,614.5 Legal consultancy fees 1,863.4 1,089.0 Operating costs and outstanding purchase invoices 1,693.3 1,620.5 Auditing costs 1,141.0 1,089.7 Expert opinions 732.8 780.8 Fees 609.5 83.7 Tax consultancy fees 554.7 543.8 Property tax 125.6 338.5 Annual reports 110.0 203.3 Group reorganisation 98.4 500.0 Other 3,494.3 3,287.4 Total 59,755.8 53,833.1

The provision for construction services was recorded in respect to services not yet billed, as well as maintenance costs, in particular at the Vivico Group.

The subsequent costs relate to expenses and deferred services related to properties sold already that are not classified as multi-component transactions (primarily guarantees).

The sundry other provisions relate to Germany at € 1,569.2 K (31.12.2009: € 966.4 K), to Eastern/South East Europe at

€ 1,023.3 K (31.12.2009: € 1,559.6 K), and to Austria at € 901.8 K (31.12.2009: € 761.4 K).

174

CONSOLIDATED FINANCIAL STATEMENTS

2.3.13. Bonds

€ 1,000 31.12.2010 31.12.2009 Maturity Book value Book value

up to 1 year 1 - 5 years more than 5 years Total Total

Convertible bond 0.0 130,537.7 0.0 130,537.7 128,302.9 Other bonds 0.0 148,999.4 196,027.7 345,027.1 344,222.4 0.0 279,537.1 196,027.7 475,564.8 472,525.3

Maturities for liabilities from other bonds were allocated on the basis of the debt maturity profile. It has been assumed that the liability for the convertible bond will become due at the time of conversion.

2.3.13.1. Convertible bond

Nominal Book value Nominal Effective Issue Repayment Price as at value 31.12.2010 interest rate interest rate 31.12.2010 31.12.2009 in € 1,000 in € 1,000 in € in € Convertible bond 135,000.0 130,537.7 4,125% 6,146% 9.11.2009 9.11.2014 106.00 91.79

The conversion price for the convertible bonds was set at € 11.5802, equal to a premium of 27.5 % above the reference price. As at 31.12.2010 the market price for CA Immo shares stood at € 11.91 (31.12.2009: € 7.90). No bonds had been received for conversion by the balance sheet date.

The transaction costs directly attributable to the issuance of a convertible bond are distributed over the term of the convertible bond in the form of an effective interest rate.

2.3.13.2. Other bonds

Nominal Book value Nominal Effective Issue Repayment Price as at value 31.12.2010 interest rate interest rate 31.12.2010 31.12.2009 in € 1,000 in € 1,000 in € in € Bonds 2006-2016 200,000.0 196,027.7 5,125% 5,530% 22.9.2006 22.9.2016 100.98 94.89 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Bonds 2009-2014 150,000.0 148,999.4 6,125% 6,329% 16.10.2009 16.10.2014 103.55 103.23 Total 350,000.0 345,027.1

The transaction costs directly attributable to the issuance of the other bonds are distributed over the term of the respective bonds in the form of an effective interest rate.

175

CONSOLIDATED FINANCIAL STATEMENTS

2.3.14. Financial liabilities

€ 1,000 31.12.2010 31.12.2009 Maturity Book value Book value

up to 1 year 1 - 5 years more than 5 years Total Total Investment credit 210,353.1 456,726.9 943,126.6 1,610,206.6 1,476,431.8 Credit from joint venture partners 21,053.2 6,732.9 6,154.9 33,941.0 22,008.9 Deferred interest on convertible bond 793.4 0.0 0.0 793.4 793.4 Deferred interest on other bonds 4,710.6 0.0 0.0 4,710.6 4,710.6 Total 236,910.3 463,459.8 949,281.5 1,649,651.6 1,503,944.7

176

CONSOLIDATED FINANCIAL STATEMENTS

As at 31.12.2010 the terms of financial liabilities are as follows:

Type of financing and currency Effective Interest Maturity Nominal Book value Fair value interest rate variable/fixed value in € 1,000 in € 1,000 as at in € 1,000 31.12.2010 in % Investment credit / EUR 2.906% variable 02/2011 25,017.5 25,007.1 25,007.1 Investment credit / EUR 2.356% variable 06/2011 15,874.2 15,874.2 15,874.2 Investment credit / EUR 3.891% variable 07/2011 13,571.7 13,664.3 13,664.3 Investment credit / EUR 5.707% variable 07/2011 18,309.7 18,492.4 18,492.4 Investment credit / EUR 3.032% variable 10/2011 21,006.0 21,006.0 21,006.0 Investment credit / EUR 4.325% variable 11/2011 8,163.7 8,608.4 8,608.4 Investment credit / EUR 5.855% variable 12/2011 22,926.2 22,829.9 22,829.9 Investment credit / EUR 4.610% variable 06/2012 50,830.0 50,589.1 50,589.1 Investment credit / EUR 3.106% variable 09/2012 8,353.4 7,963.9 7,963.9 Investment credit / EUR 4.674% variable 12/2012 151,506.8 147,688.9 147,688.9 Investment credit / EUR 5.161% fixed 12/2013 12,212.6 12,265.3 13,314.0 Investment credit / EUR 3.006% variable 12/2014 7,549.5 7,533.8 7,533.8 Investment credit / EUR 5.935% variable 12/2014 22,395.0 22,395.0 22,395.0 Investment credit / EUR 4.750% variable 11/2015 28,662.0 28,662.0 28,662.0 Investment credit / EUR 2.366% variable 12/2015 7,600.0 7,492.9 7,492.9 Investment credit / EUR 7.714% variable 03/2016 26,285.5 26,859.2 26,859.2 Investment credit / EUR 5.982% variable 12/2016 27,612.7 27,067.7 27,067.7 Investment credit / EUR 4.409% variable 01/2017 520,161.2 522,686.5 522,686.5 Investment credit / EUR 4.904% variable 12/2017 7,429.6 7,470.7 7,470.7 Investment credit / EUR 5.035% variable 12/2017 44,440.0 44,740.2 44,740.2 Investment credit / EUR 4.074% variable 06/2018 76,475.0 76,748.9 76,748.9 Investment credit / EUR 2.632% variable 11/2018 31,000.0 30,555.3 30,555.3 Investment credit / EUR 5.983% variable 12/2018 12,633.3 12,370.1 12,370.1 Investment credit / EUR 5.846% variable 12/2018 91,107.7 89,355.2 89,355.2 Investment credit / EUR 2.627% variable 06/2019 5,112.8 5,112.8 5,112.8 Investment credit / EUR 5.082% variable 06/2019 36,000.0 35,595.5 35,595.5 Investment credit / EUR 1.966% variable 09/2019 6,815.8 6,757.6 6,757.6 Investment credit / EUR 6.564% variable 09/2019 11,061.5 11,061.5 11,061.5 Investment credit / EUR 4.871% variable 09/2020 6,107.0 6,053.9 6,053.9 Investment credit / EUR 1.776% variable 12/2020 14,251.2 14,251.2 14,251.2 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Investment credit / EUR 3.856% variable 03/2021 53,391.6 53,391.6 53,391.6 Investment credit / EUR 5.877% variable 12/2021 10,657.2 10,393.7 10,393.7 Investment credit / EUR 5.855% variable 12/2021 48,630.5 47,609.6 47,609.6 Investment credit / EUR 6.506% variable 06/2022 25,233.0 25,514.8 25,514.8 Investment credit / EUR 5.208% variable 12/2023 14,344.8 14,344.8 14,344.8 Investment credit / EUR 1.776% variable 12/2023 19,527.0 19,527.0 19,527.0 Investment credit / EUR 6.681% variable 03/2024 26,656.6 26,624.0 26,624.0 Investment credit / EUR 4.877% variable 12/2024 6,319.6 6,307.6 6,307.6 Investment credit / EUR 2.556% variable 10/2029 5,281.8 5,281.8 5,281.8 Investment credit / EUR 4.271% variable 12/2030 33,150.0 32,354.9 32,354.9 Investment credit / CZK 5.720% variable 06/2013 7,675.4 7,675.4 7,675.4 Credit from joint venture partners / EUR 1.532% variable 12/2011 8,322.4 8,322.4 8,322.4 Credit from joint venture partners / EUR 4.000% fixed 12/2011 11,469.4 11,469.4 11,913.4 Credit from joint venture partners / EUR 3.506% variable 12/2016 6,154.9 6,154.9 6,154.9 Other financial liabilities each with a

nominal value below € 5,000.0 K 41,901.7 47,920.1 48,497.5

1,649,187.2 1,649,651.6 1,651,721.7

177

CONSOLIDATED FINANCIAL STATEMENTS

Other financial liabilities include an USD credit with a book value, or rather fair value, of € 331.1K.

In addition to the nominal values, the book values also take into consideration the apportionment of interest and auxiliary costs as at the relevant effective date. Fair values for fixed-interest investment credits are calculated by discounting future payments on the basis of the current market interest rate.

Taking into account all interest hedging agreements, the average weighted interest rate stands at 4.57 % (31.12.2009:

4.70 %) for all EUR financial liabilities, 2.25 % (31.12.2009: 2.20 %) for all USD financial liabilities and 5.72 %

(31.12.2009: 5.72 %) for the CZK financial liability. Financial liabilities include investment credits and credits from joint venture partners.

The CA Immo Group uses interest rate swap and cap agreements to hedge the interest rate risk. Insofar as these hedging transactions meet the requirements for hedge accounting, the effective part of the change in value for the fair values on the relevant recording date is not recognised in profit or loss (see Point 2.5.1). The ineffective portion has an immediate effect on expenses and appears under "Result from interest derivative transactions". The remaining swaps and caps, which do not meet these requirements, are recognised in profit or loss and appear under "Result from interest erivative transactions". Overall, the nominal value for the cash flow hedges directly attributable to the respective cre-

dits and concluded as at the balance sheet date stood at 76.3 % of the nominal value of all variable-interest EUR in-

vestment credits and 100.0 % of the variable-interest CZK investment credit. No interest rate swap agreements have been concluded for the variable-interest USD investment credit.

2.3.15. Other liabilities

€ 1,000 31.12.2010 31.12.2009 Maturity Book value Book value up to 1 year 1-5 years more than 5 Total Total years

Fair value derivative transactions 1,304.1 18,424.5 119,492.1 139,220.7 114,958.1 Prepayments received 32,310.4 33,767.1 9,593.0 75,670.5 73,238.6 Fiscal authorities 29,617.5 0.0 0.0 29,617.5 15,503.4 Deferred income 3,611.4 1,366.1 4,184.7 9,162.2 14,465.1 Outstanding purchase invoices 8,291.0 0.0 0.0 8,291.0 24,005.3 Liabilities from deconsolidation 6,400.0 0.0 0.0 6,400.0 0.0 Rent deposits 685.4 4,317.4 144.2 5,147.0 4,358.0 Settlement of operating costs 4,783.9 0.0 0.0 4,783.9 2,787.8 Other 3,253.9 12.4 0.0 3,266.3 2,638.3 90,257.6 57,887.5 133,414.0 281,559.1 251,954.6

Fair value maturities for derivative transactions were allocated based on the debt maturity profile for derivative transactions. As it was not possible to separate financial liabilities reliably on the basis of maturities within the remaining period, the individual derivative transactions have not been separated into short- and long-term portions.

Purchase price payments received for property sales (long-term property assets and those intended for trading) and advance payments received from multi-component transactions appear under prepayments received.

178

CONSOLIDATED FINANCIAL STATEMENTS

Liabilities towards the fiscal authorities are predominantly attributable to VAT in Germany.

Deferred income mainly refers to rental prepayments, which amount to € 7,885.3K (31.12.2009: € 12,831.1K) in Ger- many, € 899.2K (31.12.2009: € 953.9K) in Austria and € 377.7K (31.12.2009: € 680.1K) in Eastern/South East Europe.

There are liabilities in respect of outstanding purchase invoices for property acquisitions in Germany and for investment and property acquisitions in Eastern/South East Europe.

Liabilities from deconsolidation relate to companies in Eastern/South East Europe ("Project Maslov").

2.4. Cash flow

The consolidated statement of cash flows shows the impact of inflows and outflows on the cash position during the business year.

2.4.1. Fund of cash and cash equivalents The cash position (fund of cash and cash equivalents) include balances in cash and at the bank. Securities and short- term bank liabilities do not form part of the cash position (see Point 2.3.10).

Restricted credit balances with a term of over 3 months are listed under receivables and other assets. These are made up as follows:

€ 1,000 2010 2009

Maturity > 1 year 7,260.1 0.0 Maturity from 3 to 12 months 36,311.5 24,374.7 Cash and cash equivalents with drawing restrictions 43,571.6 24,374.7

2.4.2. Taxes paid The total amount of taxes paid is set out in the consolidated statement of cash flows as follows:

€ 1,000 2010 2009 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

Included in cash flow from operating activities – 15,041.7 – 12,219.7 Included in cash flow from investment activities – 29,563.3 0.0 Taxes paid – 44,605.0 – 12,219.7

The taxes paid in 2010 totalled € 44,605.0 K and are allocated on the basis of their primary cause. In the 2008 and 2009 business years, a number of long-term property assets were sold subject to tax, particularly in Germany; tax on profits had been provided for, and this now has an effect on payments. As such, in 2010 taxes paid were not just attributed to operating cash flow, but also appeared for the first time in cash flow from investment activities, amounting to € 29,563.3K (2009: € 0.0K). The remaining taxes paid, totalling € 15,041.7K (2009: € 12,219.7K), appear in the operating result. It is not necessary to adjust the previous year's figures, as no significant tax payments resulting from sales of long-term property assets were due in the previous year.

179

CONSOLIDATED FINANCIAL STATEMENTS

2.4.3. Cash flow from operating activities The increase of the cash flow from operating activities is largely due to sales of properties intended for trading in Germany. Compared with the prior year the operating cash flow remained with € 120,948.8K (2009: € 120,519.1K) unchanged.

2.4.4. Cash flow from investment activities Payments for acquisitions and investments in respect of property assets (asset deal) are as follows:

€ 1,000 2010 2009

Additions resulting from investments in long-term properties – 276,925.1 – 236,951.0 Additions from property acquisitions – 7,045.9 – 7,508.4 Capitalised interest 6,851.3 4,142.5 Change in provisions and liabilities – 23,319.9 – 19,966.5 Acquisition of and investment in properties – 300,439.6 – 260,283.4

Detailed breakdown of "Acquisition of property companies, less cash and cash equivalents":

€ 1,000 2010 2009

Purchase price including purchase price reductions for acquired companies – 3,527.2 – 64.1 Change in payments for companies acquired in prior years 4.5 – 1,228.1 Inflow of funds from first-time consolidations 2,206.2 35.0 Acquisition of property companies, less cash and cash equivalents – 1,316.5 – 1,257.2

In the 2010 business year, prepayments for property investments were made totalling € 136.000,0K (2009: other property investments € 110,4K) to acquire Europolis AG, Vienna. The deal was closed and title transferred in January 2011 (see Point 2.5.11.1).

A total of € 99,044.9K (2009: € 1,722.3K) – including € 10.6K for capital increase costs – was invested to acquire the shares held by non-controlling interests in CA Immo International AG, Vienna.

2.4.5. Cash flow from financing activities The cash inflow from financing results from the implementation of investment properties under development totalling € 249.236,3K in Germany, € 23.258,0K in Eastern/South East Europe and € 7.796,2K in Austria.

The repayment of loans concerns both current and prepayments, if investment properties are sold, that were served as security for long-term financing. The repayment in the total amount of € 95.541,2K relates to Germany, in the amount of € 15.840,6K to Eastern/South East Europe and in the amount of € 27.449,2K to Austria.

180

CONSOLIDATED FINANCIAL STATEMENTS

2.5. Other information

2.5.1. Financial instruments Financial instruments include both primary and derivative financial instruments.

Derivative financial instruments consist of the following:

31.12.2010 31.12.2009 € 1,000 Nominal value Fair value Book value Nominal value Fair value Book value

Interest rate swaps 1,857,933.7 – 136,942.0 – 136,942.0 1,699,973.1 – 114,958.1 – 114,958.1 - of which cash flow hedges 1,263,389.2 – 93,761.5 – 93,761.5 1,164,427.7 – 76,183.1 – 76,183.1 - of which fair value derivatives 594,544.5 – 43,180.5 – 43,180.5 535,545.4 – 38,775.0 – 38,775.0 Interest rate caps 50,000.0 12.9 12.9 5,784.9 0.0 0.0 Forward foreign exchange transactions 1,383.2 – 103.4 – 103.4 6,848.3 629.4 629.4 Time options 0.0 0.0 0.0 1,250.0 177.7 177.7 Total 1,909,316.9 – 137,032.5 – 137,032.5 1,713,856.3 – 114,151.0 – 114,151.0 - of which cash flow hedges 1,263,389.2 – 93,761.5 – 93,761.5 1,164,427.7 – 76,183.1 – 76,183.1 - of which fair value derivatives 645,927.7 – 43,271.0 – 43,271.0 549,428.6 – 37,967.9 – 37,967.9

Interest rate swaps Interest rate swaps, which exchange fixed-interest rates for variable ones, are designated as fair value hedges in relation to interest rates. The effectiveness of the hedge relationship between hedging and underlying transactions is regularly examined using effectiveness measurements. The cash flow hedges, which have a nominal value of

€ 1,263,389.2K (31.12.2009: € 1,164,427.7K) and an underlying valuation of € -93,761.5K (31.12.2009: € -76,183.1K), include ineffective portions with a nominal value of € 2,921.4K in total (31.12.2009: € 2,282.4K) and a market value of

€ -103.9K (2009: € -210.1K); as such, these are recognised as an expense.

The fair value derivatives, which have a nominal value of € 594,544.5K (31.12.2009: € 535,545.4K) and an underlying

valuation of € -43,180.5K (31.12.2009: € -38,775.0K), include swaps with a nominal value of € 426,344.5K (31.12.2009:

€ 430,195.4K) and an underlying valuation of € -45,054.3K (31.12.2009: € -38,169.4K), as they do not meet the requirements for cash flow hedges. For swaps with a nominal value totalling € 168,200.0K (31.12.2009: € 105,350.0K) and

which do not fulfil the criteria for cash flow hedge accounting there are swap transactions as off-set entries for security FINANCIAL STATEMENTS CONSOLIDATED purposes concluded; they were also classified as fair value derivatives and as at 31.12.2010 have a market value

amounting to € 1,873.7K (31.12.2009: € -605.6K).

181

CONSOLIDATED FINANCIAL STATEMENTS

The interest rate swap existing as t 31.12.2010 had the following market values and conditions as at 31.12.2010:

Currency Nominal value Start End Fixed interest Reference Fair value Allocation 1) in € 1,000 rate as at interest rate 31.12.2010 31.12.2010

EUR 13,560.0 07/2007 07/2011 4,720% 3M-Euribor – 277.1 cfh EUR 8,190.0 03/2009 12/2011 2,425% 3M-Euribor – 112.0 cfh EUR 444.0 07/2007 12/2011 4,695% 3M-Euribor – 10.1 cfh EUR 14,741.0 09/2004 12/2011 3,870% 3M-Euribor – 408.1 cfh EUR 7,370.5 07/2005 12/2011 2,895% 3M-Euribor – 131.8 cfh EUR 14,741.0 09/2004 12/2011 2,990% 3M-Euribor – 290.5 cfh EUR 7,262.3 02/2005 04/2012 3,510% 3M-Euribor – 218.9 cfh EUR 3,631.1 07/2005 04/2012 3,045% 3M-Euribor – 87.5 cfh EUR 50,830.0 06/2009 06/2012 2,310% 3M-Euribor – 665.7 cfh EUR 9,047.3 09/2007 12/2012 4,500% 3M-Euribor – 516.3 cfh EUR 151,400.0 03/2010 12/2012 1,925% 3M-Euribor – 2,492.1 cfh EUR 59,687.5 01/2008 12/2012 4,250% 3M-Euribor – 3,368.7 fvd EUR 13,328.3 07/2007 06/2014 4,755% 3M-Euribor – 1,190.4 cfh EUR 12,270.0 07/2007 06/2014 4,750% 3M-Euribor – 1,140.0 cfh EUR 5,261.5 07/2007 06/2014 4,755% 3M-Euribor – 489.8 cfh EUR 4,741.4 07/2007 06/2014 4,760% 3M-Euribor – 414.5 cfh EUR 21,905.0 05/2006 12/2014 4,200% 6M-Euribor – 1,603.2 cfh EUR 13,875.0 03/2006 12/2014 3,670% 3M-Euribor – 865.9 cfh EUR 13,875.0 03/2006 12/2014 3,300% 3M-Euribor – 774.2 cfh EUR 28,662.0 12/2008 11/2015 4,000% 3M-Euribor – 2,312.9 cfh EUR 16,039.1 12/2008 12/2015 4,010% 3M-Euribor – 1,308.0 fvd EUR 29,427.2 06/2008 03/2016 4,505% 3M-Euribor – 3,014.4 cfh/fvd EUR 29,600.0 12/2008 09/2016 4,070% 3M-Euribor – 2,834.8 fvd EUR 464,461.3 12/2006 01/2017 3,905% 3M-Euribor – 37,221.5 cfh EUR 55,700.0 12/2006 01/2017 3,940% 3M-Euribor – 3,293.9 cfh EUR 63,030.0 09/2008 03/2017 4,348% 3M-Euribor – 6,538.8 fvd EUR 17,291.3 10/2007 07/2017 4,613% 3M-Euribor – 2,047.6 fvd EUR 12,555.0 07/2007 10/2017 4,173% 3M-Euribor – 1,190.4 fvd EUR 13,724.0 12/2007 10/2017 4,378% 3M-Euribor – 1,463.1 fvd EUR 7,410.0 11/2008 12/2017 4,373% 3M-Euribor – 781.7 cfh EUR 65,000.0 12/2007 12/2017 4,820% 3M-Euribor – 9,044.3 fvd EUR 43,935.0 11/2007 12/2017 4,495% 3M-Euribor – 4,712.9 cfh EUR 22,926.2 12/2008 12/2017 4,405% 3M-Euribor – 2,464.7 cfh EUR 119,375.0 01/2008 12/2017 4,410% 3M-Euribor – 12,867.1 cfh/fvd EUR 53,873.8 12/2008 12/2017 4,405% 3M-Euribor – 5,791.8 cfh EUR 43,200.0 01/2008 12/2017 4,405% 3M-Euribor – 4,628.7 fvd EUR 50,000.0 07/2008 07/2018 4,789% 3M-Euribor – 7,036.2 cfh EUR 59,687.5 01/2008 12/2022 4,550% 3M-Euribor – 7,382.8 cfh/fvd EUR 60,000.0 01/2008 12/2022 4,550% 3M-Euribor – 7,332.2 fvd CZK 7,675.4 06/2008 06/2013 4,620% 3M-Pribor – 491.1 cfh variable in fixed 1,689,733.7 – 138,815.7 EUR 65,000.0 12/2010 12/2013 1,525% 3M-Euribor – 301.6 fvd EUR 43,200.0 10/2009 12/2015 2,730% 3M-Euribor 950.9 fvd EUR 60,000.0 10/2009 12/2020 3,290% 3M-Euribor 1,224.4 fvd fixed in variable 168,200.0 1,873.7

Total 1,857,933.7 – 136,942.0 1) cfh Cash flow hedge; fvd Fair value derivative

182

CONSOLIDATED FINANCIAL STATEMENTS

Both cash flow hedges and fair value derivatives belong in the category HFT – held for trading purposes.

The average weighted interest rate for all EUR interest rate swaps stands at 3.80 % and 4.62 % for the CZK interest rate swap.

Interest rate caps Interest rate caps are exclusively used to hedge the risk of interest rate changes on existing loans. The item "Other fi-

nancial assets" contains a contractually-agreed interest rate ceiling of 2.50 % on the basis of the 1M Euribor rate, which

matures on 31.12.2011. A second interest rate cap of 1.00 % on the basis of the 1M Euribor rate has been listed separately under short-term liabilities from derivatives, since it matures on 31.10.2011. There were two interest rate caps in the previous year, which expired on 31.01.2010.

Forward foreign exchange transactions One company in Poland concluded forward foreign exchange transactions to hedge against future currency fluctuations for rental incomes in USD.

The forward foreign exchange transactions existing as at 31.12.2010 had the following market values and conditions as at 31.12.2010:

Currency Fixed exchange Start End Currency Nominal value Fair value Allocation 1) rate as at in € 1,000 in € 1,000 31.12.2010 31.12.2010

USD 1.4236 06/2009 06/2011 825.0 579.5 – 40.0 fvd USD 1.4287 06/2009 12/2011 650.0 455.0 – 34.5 fvd USD 1.4337 06/2009 06/2012 500.0 348.7 – 28.8 fvd 1,975.0 1,383.2 – 103.4

1) fvd Fair value derivative

Changes recognised directly in equity

€ 1,000 2010 2009

As at 1.1. – 62,480.3 – 55,350.0 Change in valuation of cash flow hedges – 18,114.0 – 24,840.7 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Change of ineffectiveness cash flow hedges 106.2 210.1 Raclassification cash flow hedges 378.1 19,090.1 Taxes on income on cash flow hedges 2,489.7 – 1,589.8 Reclassification acquisition of non-controlling interests 1) 3,854.4 0.0 As at 31.12. – 73,765.9 – 62,480.3 thereof: attributable to the owners of the parent – 72,716.4 – 58,291.6 thereof: attributable to non-controlling interests – 1,049.5 – 4,188.7

1) The reclassification affects the valuation of the cash flow hedges including tax on profits on non-controlling interests for capital reserves due to the acquisition of shares in CA Immo International AG, Vienna, and the subsequent merger, which was recorded as an equity transaction without an impact on net income in accordance with IFRS 3/IAS 27 (see Point 1.6.1).

As a result of the premature termination of the underlying transaction during the business year, the interest rate swaps, which were originally shown as cash flow hedges, no longer meet the requirements for a hedge relationship and must, therefore, be reclassified as fair value derivatives; as such, they have to be shown in the income statement. For details of tax on profits on cash flow hedges, please refer to Point 2.2.

183

CONSOLIDATED FINANCIAL STATEMENTS

Fair values Fair values for financial assets and financial liabilities are indicated for each item in question. The fair value of the remaining original financial instruments equates to the book value due to daily and/or short-term maturities.

The table below sets out the financial instruments, whose subsequent valuation has been carried out on the basis of their fair value. These are divided into three stages, depending on the extent to which it is possible to observe the fair value.

 Level 1 measurements based on the fair value are ones calculated from the prices noted (unadjusted) in active markets for identical financial assets or liabilities.  Level 2 measurements based on the fair value are ones that rely on parameters, which do not correspond to the prices noted for assets and liabilities in stage 1 (data); and are, instead, derived directly (i.e. prices) or indirectly (i.e. derived from prices).  Level 3 measurements based on the fair value are ones calculated from models, which use parameters to measure assets and liabilities that are not based on observable market data (non-observable parameters, assumptions).

31.12.2010 € 1,000 Level 1 Level 2 Level 3 Total

Financial assets from category “Valued at fair value in income statement” Interest rate caps 0.0 12.9 0.0 12.9 Financial liabilities from category "Derivative/Hedge-Accounting" Interest rate swaps 0.0 – 93,761.5 0.0 – 93,761.5 Financial liabilities from category “Valued at fair value in income statement” Interest rate swaps 0.0 – 43,180.5 0.0 – 43,180.5 Forward foreign exchange transactions 0.0 – 103.4 0.0 – 103.4 Total 0.0 – 137,032.5 0.0 – 137,032.5

184

CONSOLIDATED FINANCIAL STATEMENTS

31.12.2009 € 1,000 Level 1 Level 2 Level 3 Total

Financial assets from category “Valued at fair value in income statement” Forward foreign exchange transactions 0.0 807.1 0.0 807.1 Financial liabilities from category "Derivative/Hedge-Accounting" Interest rate swaps 0.0 – 76,183.1 0.0 – 76,183.1 Financial liabilities from category “Valued at fair value in income statement” Interest rate swaps 0.0 – 38,775.0 0.0 – 38,775.0 Total 0.0 – 114,151.0 0.0 – 114,151.0

No transfers between the levels were made during the 2010 and 2009 reporting periods.

The CA Immo Group divides its liabilities into the following categories in accordance with IAS 39.9:

Book value = Category Category 1) market value HFT at amortised cost Non-FI 31.12.2010 € 1,000

Liabilities from convertible bonds 0.0 130,537.7 0.0 130,537.7 Liabilities from other bonds 0.0 345,027.1 0.0 345,027.1 Financial liabilities 0.0 1,649,651.6 0.0 1,649,651.6 Trade creditors 0.0 62,128.7 0.0 62,128.7 Non-controlling interests held by limited partners 0.0 1,996.8 0.0 1,996.8 Liabilities to joint ventures 0.0 1,670.8 0.0 1,670.8 Derivative financial liabilities 139,220.7 0.0 0.0 139,220.7 Other liabilities 0.0 103,558.7 38,779.7 142,338.4 Liabilities relating to properties held for sale 0.0 5,853.6 0.0 5,853.6 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED 139,220.7 2,300,425.0 38,779.7 2,478,425.4

1) HFT Held for trading; Non-FI Non-financial instrument

185

CONSOLIDATED FINANCIAL STATEMENTS

Book value = Category Category 1) market value HFT at amortised cost Non-FI 31.12.2009 € 1,000

Liabilities from convertible bonds 0.0 128,302.9 0.0 128,302.9 Liabilities from other bonds 0.0 344,222.4 0.0 344,222.4 Financial liabilities 0.0 1,503,944.7 0.0 1,503,944.7 Trade creditors 0.0 65,716.8 0.0 65,716.8 Non-controlling interests held by limited partners 0.0 2,437.6 0.0 2,437.6 Liabilities to joint ventures 0.0 15,225.9 0.0 15,225.9 Derivative financial liabilities 114,958.1 0.0 0.0 114,958.1 Other liabilities 0.0 107,028.0 29,968.5 136,996.5 114,958.1 2,166,878.3 29,968.5 2,311,804.9

1) HFT Held for trading; Non-FI Non-financial instrument

2.5.2. Financial risks Capital market risk The CA Immo Group manages the capital market risk in several different ways: firstly, the company is highly skilled at liquidity planning and safeguarding measures in order to avoid tight positions. Secondly, the CA Immo Group pro- tects itself by entering into capital partnerships (joint ventures) for project development purposes as an alternative and extension to established sources of equity capital procurement. Outside capital is procured by the CA Immo Group not only from its principal bank, UniCredit Bank Austria AG/UniCredit Group, but also and to a growing extent through new or developing business relationships with other domestic and foreign banks. In order to improve the financing structure and strengthen the liquidity of the CA Immo Group, two bonds and one convertible bond have been issued.

Interest rate risk Risks resulting from changes in interest rates basically concern long-term loans. A mix of long-term fixed-rate and floating-rate loans are used to reduce the interest rate risk. In the case of floating-rate loans, derivative financial instruments (interest rate caps and interest rate swaps) are also used to hedge against the risk of interest rate changes arising from underlying transactions.

A list of all major interest rate liabilities as well as swap agreements, which have been concluded, and maturity dates can be found under Points 2.3.14 and 2.5.1. No risks which represent a major and permanent danger to the CA Immo Group exist at the present time.

186

CONSOLIDATED FINANCIAL STATEMENTS

The following analysis shows the effects of a change in interest rates by 100 basis points on the income statement and equity. The analysis assumes that all other variables, particularly foreign exchange rates, remain constant.

in € 1,000 Recognised in profit or loss Recognised directly in equity 100 bps 100 bps 100 bps 100 bps increase decrease increase decrease

31.12.2010 Variable rate instruments – 15,968.6 15,968.6 0.0 0.0 Interest rate swaps (interest) 18,579.3 – 18,579.3 0.0 0.0 Interest rate swaps (valuation) 14,613.1 – 15,650.5 43,342.4 – 45,989.7 17,223.8 – 18,261.2 43,342.4 – 45,989.7 31.12.2009 Variable rate instruments – 14,612.8 14,612.8 0.0 0.0 Interest rate swaps (interest) 16,999.7 – 16,999.7 0.0 0.0 Interest rate swaps (valuation) 25,736.5 – 26,903.5 48,246.0 – 49,646.4 28,123.4 – 29,290.4 48,246.0 – 49,646.4

The sensitivity analysis is based on the consolidated statement of financial position values as at 31.12.2010 assuming that there is a change in interest rates of 100 basis points. Floating-rate instruments contain floating-rate financial liabilities, loans and financial receivables and do not take into account hedge relationships. In the case of financial derivatives, an interest rate change gives rise to a component that is recognised in profit and loss (interest, valuation of fair value derivatives and ineffective portions of cash flow hedge valuation) and to the change in value of cash flow hedges recognised in equity. The market value of interest rate caps is equal to the book value. The two interest rate cap agreements of the CA Immo Group become due on 31.12.2011 and have not been considered within the sensitivity analysis due to their short term and the low volume.

Currency risk Currency risks result from rental income and rental receivables in foreign currencies, principally BGN, CHF, CZK, HUF, PLN, RON and RSD. These foreign currency rental earnings are secured through a linkage of rents to EUR and USD, so that on balance no major risk exists. On the liabilities side risks may result from financing in CZK and USD (see Point 2.3.14). This risk mainly applies to rental income in CZK and USD. Loans are taken out in the same currency as the one covering the lease in question. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

The following table shows what effect a 10 % increase or decrease in the Euro compared to the respective foreign cur-

rency would have. A positive number indicates a increase in the annual result if the Euro were to rise by 10 % com-

pared to the respective foreign currency. If the Euro were to fall by 10 % compared to the relevant foreign currency, this would have a similarly negative effect on the annual result. The outstanding financial liabilities in foreign currencies of

the CA Immo Group as at the balance sheet date serve as a basis for the sensitivity analysis assuming a 10 % increase or decrease in the Euro compared to the respective foreign currency.

187

CONSOLIDATED FINANCIAL STATEMENTS

31.12.2010 € 1,000 USD impact CZK impact

Exchange rate 1.3341 25.0800 +10% increase 1.4675 30.1 27.5880 697.8 – 10% decrease 1.2007 – 36.8 22.5720 – 852.8

31.12.2009 € 1,000 USD impact CZK impact

Exchange rate 1.4310 26.4000 +10% increase 1.5741 279.0 29.0400 683.8 – 10% decrease 1.2879 – 341.0 23.7600 – 835.8

Forward foreign exchange transactions have been concluded to avoid the risks of currency fluctuations; these should counteract future fluctuations in USD rental income.

A list of all forward foreign exchange transactions that have been concluded as well as maturity dates can be found in Point 2.5.1.

Credit risk On the assets side, the amounts listed represent the maximum default risk as no major set off-set agreements exist. Trade debtors are off-set against deposits received amounting to € 5,147.0K and bank guarantees. Receivables from property sales have not been secured by guarantees. As far as it can be determined, the risk to receivables from tenants and property purchasers has been taken into consideration as part of the value adjustments. If there are objective indi- cations of a value adjustment (e.g. through defaults in payment, litigation, insolvency), an impairment is recognised. The same applies to financing obtained by joint ventures or associated companies, should it become likely that these companies, following developments in the course of their business, will no longer be able to meet their financial obligations in full. The impairment loss is the difference between the current book value for the asset and the cash value of the future cash flow expected from the receivables. The default risk for other financial instruments listed on the assets side of the balance sheet should be seen as minimal, as the majority of financial instruments used by contractual partners have the highest credit rating scores possible and/or are provided by state authorities. Please refer to Point 2.5.3 for the risks associated with securities and other guarantees.

Liquidity risk There is a liquidity risk where financial liabilities cannot be settled at the time they are payable. Guaranteeing sufficient monies to pay liabilities due whilst avoiding unnecessary potential losses and risks forms the basis of CA Immo Group's liquidity control. Loans are usually agreed on a long-term basis in accordance with the investment horizon for real estate.

188

CONSOLIDATED FINANCIAL STATEMENTS

The contractually agreed (non-discounted) interest payments and repayments for original financial liabilities and derivative financial instruments can be seen in the table below.

31.12.2010 Book value Contractually Cash flow Cash flow Cash flow € 1,000 2010 agreed cash 2011 2012-2015 2016 ff flows

Primary financial liabilities: Liabilities from convertible bonds 130,537.7 – 157,275.0 – 5,568.8 – 151,706.3 0.0 Liabilities from other bonds 345,027.1 – 448,250.0 – 19,437.5 – 218,562.5 – 210,250.0 Financial liabilities 1,649,651.6 – 1,982,159.8 – 268,319.2 – 640,208.6 – 1,073,632.0 Trade creditors 62,128.7 – 62,128.7 – 25,025.0 – 37,103.7 0.0 Non-controlling interests held by limited partners 1,996.8 – 1,996.8 0.0 0.0 – 1,996.8 Liabilities to joint ventures (interest-bearing) 1,138.6 – 1,150.3 – 1,150.3 0.0 0.0 Liabilities to joint ventures (interest-free) 532.2 – 532.2 – 532.2 0.0 0.0 Other interest-free liabilities 142,338.5 – 142,338.5 – 88,953.5 – 39,463.0 – 13,921.9 Liabilities relating to properties held for sale 5,853.6 – 5,853.6 – 5,853.6 0.0 0.0 Derivative financial liabilities: Interest rate derivatives in connection with cash flow hedges:1) 93,761.5 – 98,510.2 – 31,533.4 – 60,319.5 – 6,657.2 Interest rate derivatives not connected with hedges:1) 45,355.8 – 49,456.0 – 13,888.0 – 29,029.3 – 6,538.6 Forward foreign exchange transactions not connected with hedges 103.4 – 103.4 – 74.6 – 28.8 0.0 2,478,425.4 – 2,949,754.4 – 460,336.0 – 1,176,421.8 – 1,312,996.5

1) Cash flows for interest rate derivatives are based on assumptions for the underlying forward rates.

31.12.2009 Book value Contractually Cash flow Cash flow Cash flow € 1,000 2009 agreed cash 2010 2011-2014 2015 ff flows

Primary financial liabilities: Liabilities from convertible bonds 128,302.9 – 162,843.8 – 5,568.8 – 157,275.0 0.0 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Liabilities from other bonds 344,222.4 – 467,687.5 – 19,437.5 – 227,750.0 – 220,500.0 Financial liabilities 1,503,944.7 – 1,898,016.3 – 145,129.5 – 585,599.6 – 1,167,287.2 Trade creditors 65,716.8 – 65,716.8 – 24,901.0 – 40,815.8 0.0 Non-controlling interests held by limited partners 2,437.6 – 2,437.6 0.0 0.0 – 2,437.6 Liabilities to joint ventures (interest-bearing) 626.3 – 638.9 – 638.9 0.0 0.0 Liabilities to joint ventures (interest-free) 14,599.6 – 14,599.6 – 14,599.6 0.0 0.0 Other interest-free liabilities 136,996.5 – 136,996.5 – 77,831.6 – 50,077.8 – 9,087.1 Derivative financial liabilities: 1) Interest rate derivatives in connection with cash flow hedges 76,183.1 – 82,559.3 – 35,326.8 – 46,610.4 – 622.1 Interest rate derivatives not connected with hedges 38,775.0 – 39,718.1 – 17,275.5 – 23,844.0 1,401.4 2,311,804.9 – 2,871,214.4 – 340,709.2 – 1,131,972.6 – 1,398,532.6

1) Cash flows for interest rate derivatives are based on assumptions for the underlying forward rates.

189

CONSOLIDATED FINANCIAL STATEMENTS

2.5.3. Other liabilities and contingent liabilities Guarantees and other commitments As at 31.12.2010 the Vivico Group has guarantees and other commitments amounting to € 24,870.3K (31.12.2009: € 22,033.0K) derived from urban development contracts and purchase agreements, which have been concluded to absorb the costs of contaminated sites and/or war damage totalling € 3,374.0K (31.12.2009: € 4,765.3K). Furthermore, rental guarantees have been made for the sum of € 64.0K (31.12.2009: € 211.0K).

In addition comfort letters have been signed for a proportionally consolidated company in Germany amounting to € 2,000.0K (31.12.2009: € 2,285.0K) and a guarantee has been given for € 800.0K (31.12.2009: € 800.0K). The total outflow of funds depends on the company’s future business development.

As at 31.12.2010 guarantees and other commitments for € 1,905.0K (31.12.2009: € 1,905.0K) had been made for East- ern/South East Europe in respect of a proportionally consolidated company in Slovakia.

Contingent liabilities The JV partner from "Project Maslov" has announced an arbitration action for € 48,000.0K. The CA Immo Group considers the chances of this action succeeding as minimal. As a payment in this respect is regarded as not probable, this issue has not been recognized in the statement of financial position.

Other financial obligations Apart from leasing arrangements (see item 2.5.4. Leases), there are other financial obligations relating to building site liabilities for work carried out in the course of developing real estate in Germany of € 146,570.0K, in Austria of € 10,818.3K and in Eastern/South East Europe of € 23,450.0K. For at equity consolidated companies there are proportionate other financial obligations arising from building site liabilities for work carried out to develop real estate in Eastern/South East Europe amounting to € 3,735.0K.

As at 31.12.2010 the total obligations of the CA Immo Group in respect of equity calls for proportionally consolidated companies amounted to € 178.9K (31.12.2009: € 178.9K).

2.5.4. Leases CA Immo Group as lessor All lease contracts concluded by the CA Immo Group, where the company is acting as lessor, are recorded as operating leases in accordance with IFRS. As a rule, these encompass the following essential contractual elements:

 linkage to EUR, USD or CHF  guaranteed value by linkage to international indices  medium- to long-term maturities and/or termination waivers

Future minimum rental income from existing short-term lease contracts or contracts with termination waivers as at the day the consolidated financial statements were drawn up are as below:

€ 1,000 2010 2009

in following year 152,657.1 140,422.2 thereafter 4 years 520,415.5 434,910.8 more than 5 years 1,214,851.5 1,071,136.2 Total 1,887,924.1 1,646,469.2

All remaining tenancies may be terminated at short notice.

190

CONSOLIDATED FINANCIAL STATEMENTS

The minimum rental income includes net rentals to be collected until the the contractually agreed expiration of the contract or the earliest possible termination option by the lessee (tenant).

CA Immo Group as lessee All rental obligations undertaken by the CA Immo Group are classified as operating leases.

The lease contracts concluded by the Vivico Group acting as lessee, primarily relate to rented properties in Frankfurt (until 2011), Cologne (until 2011) and Munich (until 2017).

The remaining operating lease agreements of the CA Immo Group relate to office furniture, equipment and other assets. No purchase options have been agreed. Leasing payments of € 2,732.3K were recorded in the income statement as expenses during the business year (2009: € 2,772.8K).

The following minimum lease payments will become due in the subsequent periods:

€ 1,000 2010 2009

up to 1 year 1,839.9 1,668.5 thereafter 4 years 4,602.0 1,900.1 more than 5 years 4,020.8 634.0 Total 10,462.7 4,202.6

2.5.5. Business relationships with related companies and parties The following companies and parties are deemed to be related parties to the CA Immo Group:

 joint ventures, in which the CA Immo Group holds an interest  associated companies, in which the CA Immo Group holds an interest  the executive bodies of CA Immobilien Anlagen Aktiengesellschaft  UniCredit Bank Austria AG, Vienna, and companies affiliated to the UniCredit Group

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

191

CONSOLIDATED FINANCIAL STATEMENTS

As at the balance sheet date, the following significant receivables and liabilities existed towards joint ventures and associated companies in which the CA Immo Group holds an interest:

€ 1,000 31.12.2010 31.12.2009

Loans to joint ventures Poleczki Business Park Sp.z.o.o., Warsaw 6,174.5 6,481.6 Megapark o.o.d., Sofia 3,298.8 0.0 Pannonia Shopping Center Kft., Györ 1,669.1 1,180.3 Log Center d.o.o., Belgrade 0.0 1,165.0 Triastron Investments Limited, Nicosia 0.0 16,156.5 Total 11,142.4 24,983.4

Loans to associated companies OAO Avielen AG, St. Petersburg 14,550.9 11,867.8 Total 14,550.9 11,867.8

Receivables from joint ventures REC Frankfurt Objekt GmbH & Co. KG, Frankfurt 24,618.7 27,701.5 SKYGARDEN Arnulfpark GmbH & Co. KG, Grünwald 8,948.3 8,483.8 Einkaufszentrum Erlenmatt AG, Basel 1,796.0 822.7 Log Center d.o.o., Belgrade 1,127.6 0.0 Starohorska Development s.r.o., Bratislava 1,041.3 0.0 Zollhafen Mainz GmbH & Co. KG, Mainz 444.7 0.0 Congress Centrum Skyline Plaza GmbH & Co. KG, Hamburg 319.8 0.0 Boulevard Süd 4 GmbH & Co. KG, Ulm 191.7 2,060.1 Lokhalle München Verwaltungsgesellschaft mbH & Co. KG, Munich 0.0 781.1 Other 147.8 185.2 Total 38,635.9 40,034.4

Liabilities to joint ventures CA Betriebsobjekte Polska Sp.z.o.o., Warsaw 1,138.6 626.3 Zollhafen Mainz GmbH & Co. KG, Mainz 300.0 0.0 Concept Bau Premier Vivico Isargärten GmbH & Co KG, Munich 167.4 1,523.6 Infraplan Vivico Isargärten GmbH & Co KG, Munich 0.5 941.5 SKYGARDEN Arnulfpark GmbH & Co. KG, Grünwald 0.1 7,612.0 REC Frankfurt Objekt GmbH & Co. KG, Frankfurt 0.0 2,846.8 Lokhalle München Verwaltungsgesellschaft mbH & Co. KG, Munich 0.0 1,228.9 Einkaufszentrum Erlenmatt AG, Basel 0.0 319.5 Other 64.2 127.3 Total 1,670.8 15,225.9

192

CONSOLIDATED FINANCIAL STATEMENTS

Outstanding loans to joint ventures as at the balance sheet date serve to finance property companies. The interest rates are in line with those prevailing in the market. No guarantees or other forms of security exist in connection with these loans. The cumulative value adjustment of loans to joint ventures is € 18,581.3K and relates to loans to Triastron In- vestments Limited of Nicosia (Project Maslov), which was recorded solely as expenditure in the business year 2010 (2009: € 0.0K). € 16,940.8K of the impairment expense were taken into account when calculating deconsolidation gain.

Outstanding loans to associated companies as at the balance sheet date serve to finance project development companies. All loans have interest rates in line with those prevailing in the market. No guarantees or other forms of security exist in connection with these loans. The cumulative value adjustment of loans to associated companies is € 5,271.8K. € 343.2K (2009: € 2,614.5K) was recorded as expense during the business year.

Receivables from joint ventures comprise granted short-term loans in the amount of € 22,849.3K (31.12.2009: € 11,579.3K). All receivables have interest rates in line with those prevailing in the market. The remaining receivables are predominantly the result of services performed, particularly in Germany and Switzerland. No guarantees or other forms of security exist in connection with these receivables.

There were no other value adjustements recognised in profit or loss.

The liability towards CA Betriebsobjekte Polska Sp.z.o.o., Warsaw, takes the form of a loan. All liabilities are the result of services performed, particularly in Germany and Switzerland. All liabilities have interest rates in line with those prevailing in the market. No guarantees or other forms of security exist in connection with these liabilities.

Moreover, comfort letters have been signed for two proportionally consolidated companies (see item 2.5.3.).

The executive bodies of CA Immobilien Anlagen Aktiengesellschaft, Vienna: Management Board Bruno Ettenauer Wolfhard Fromwald Bernhard H. Hansen

The Management Board of CA Immobilien Anlagen Aktiengesellschaft is also the board of directors for Vivico Real Estate GmbH, Frankfurt. Despite working for both companies, Bruno Ettenauer and Wolfhard Fromwald, members of the Management Board, only receive remuneration in respect of their contracts of employment with CA Immobilien Anlagen Aktiengesellschaft. The remuneration of Bernhard H. Hansen is settled in its entirety by Vivico Real Estate GmbH, Frankfurt; no charge is made to CA Immobilien Anlagen Aktiengesellschaft. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED Total costs for the Management Board consist of the following:

€ 1,000 2010 2009

Payments due at short notice (incl. staff incidentals) 961.9 766.3 Provision for premiums 852.1 0.0 Endowments to severance payments/contributions to pensions funds 199.0 72.9 Variable compensation (LTI) provision 171.5 0.0 Total costs 2,184.5 839.2

193

CONSOLIDATED FINANCIAL STATEMENTS

Management fees (including ancillary staff expenses, remuneration in kind and pension contributions) for Bruno Et- tenauer and Wolfhard Fromwald, members of the Management Board, which were charged to CA Immo International AG, Vienna, prior to its merger with CA Immobilien Anlagen Aktiengesellschaft, totalled € 197.8K (2009: € 243.4K); these were switched to be based on the number of hours and/or amount of work carried out by the individual members of the Management Board.

Please refer to Point 1.6.6. for variable remuneration (LTI).

Supervisory Board Wolfgang Ruttenstorfer, Chairman Helmut Bernkopf, Deputy Chairman Detlef Bierbaum Reinhard Madlencnik Regina Prehofer Horst Pöchhacker (until 31.7.2010)

As at 31.12.2010 all positions on the Supervisory Board had been elected.

In 2010 (for the 2009 business year), CA Immobilien Anlagen Aktiengesellschaft paid a total of € 71.2K (2009 for the 2008 business year: € 56.0K) in Supervisory Board compensation. No other fees (particularly for consultancy or brokerage activities) were paid to Supervisory Board members. No loans or advances were paid to either Management Board or Supervisory Board members.

Alongside their functions at CA Immombilien Anlagen Aktiengesellschaft, Helmut Bernkopf and Reinhard Madlenc- nik served on the Supervisory Board of the subsidiary CA Immo International AG, Vienna (previously a listed company as well). Furthermore, Helmut Bernkopf, who serves on the Management Board of UniCredit Bank Austria AG, Vienna, is responsible for corporate clients business and the Investment Banking division, whilst Reinhard Madlencnik heads up the Real Estate division at UniCredit Bank Austria AG, Vienna.

UniCredit Bank Austria AG/UniCredit Group

UniCredit Bank Austria AG is the principal bank of the CA Immo Group and the largest shareholder in the company

with a stake of over 10 % (as at: 31.12.2010). CA Immo Group processes most of its payment transactions and arranges much of its credit financing and financial investment through the bank. UniCredit Bank Austria AG also holds four registered shares, which entitle the bank to nominate one Supervisory Board member for each share.

The following is a list of the relationships with UniCredit Bank Austria AG/UniCredit Group:

 Consolidated statement of financial position: € 1,000 31.12.2010 31.12.2009

Share of financial liabilities recognised in consolidated statement of financial position 25.3% 26.8% Outstanding receivables 159,722.7 378,845.4 Outstanding liabilities – 538,020.8 – 528,812.2 Market value of interest rate swaps – 95,394.7 – 79,405.5

194

CONSOLIDATED FINANCIAL STATEMENTS

 Consolidated income statement/equity: € 1,000 2010 2009

Net interest expenses (incl. interest income, swap expenses and income and loan processing charges) - CA Immo AG – 17,521.1 – 16,762.8 - CA Immo Group subsidiaries – 29,867.7 – 30,740.9 Marketing and sales fees 0.0 – 9.0 Issue costs 0.0 – 1,105.5

 Consolidated statement of cash flows:

€ 1,000 2010 2009

Raising of new bank loans 35,310.0 69,971.2 Repayment of bank loans – 40,710.0 – 176,680.7

Mortgages, share pledges and similar guarantees are used as collateral for bank liabilities. There were no impairments recognised in profit or loss for bank receivables. The terms and conditions governing the business relationship with UniCredit Bank Austria AG/UniCredit Group are in line with those prevailing in the market.

2.5.6. Net profit effect on the income statement of the settlement of transactions within the CA Immo Group and the CAINE Group The CA Immo Group has a 60.0 % stake in CA IMMO NEW EUROPE PROPERTY FUND S.C.A. SICAR, Luxembourg. The individual financial statements of the CA IMMO NEW EUROPE PROPERTY FUND S.C.A. SICAR are shown as fully consolidated in the consolidated financial statements of the CA Immo Group, meaning that the business transactions with CA IMMO NEW EUROPE PROPERTY FUND S.C.A. SICAR and its subsidiaries are not taken into consideration in the individual items of the annual financial statements but are refected only in the share of net income attributable to non-controlling interest.

Linkage of the non-controlling interest in the individual group company of CA IMMO NEW EUROPE PROPERTY FUND S.C.A. SICAR, Luxembourg, (CAINE) is detailed below based on intragroup settlements: CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

€ 1,000 31.12.2010 31.12.2009

Result of subgroup CAINE after consolidation of CA Immo Group – 3,732.4 – 24,349.9

of which 40.0 % expected non-controlling interest – 1,491.8 – 9,732.0 Actual non-controlling interest – 2,106.3 – 11,166.0 Difference 614.5 1,434.0

Composition of the difference Non-controlling interest in respect of asset management fee 489.3 1,358.9 Non-controlling interest in respect of interest income 86.4 38.6 Non-controlling interest in respect of management fees 36.1 36.5 Non-controlling interest in respect of marketing expenses 2.8 0.0 Total 614.5 1,434.0

195

CONSOLIDATED FINANCIAL STATEMENTS

2.5.7. Capital management The objective of CA Immo Group's capital management is, firstly, to make the necessary resources for the continuation of the company available at all times, and secondly, to optimise the costs for the capital required for this.

The key parameters for determining the capital structure of the CA Immo Group are, on the one hand, the general relationship of shareholders´ equity to liabilities, and on the other, the split within liabilities between that using properties as collateral, which are taken out by special-purpose vehicles, and unsecured liabilities, which are taken out by the group parent company. Equity based on the IFRS accounts is used for management. With regard to the first parameter,

the CA Immo Group strives to maintain an equity ratio of at least 35 % to 40 %. As at 31.12.2010, the equity ratio was within this target corridor. As a result of the first-time consolidation of the Europolis Group in 2011, it is likely, though, that this target ratio will not be met. Consequently, the CA Immo Group intends to take active steps to improve the equity ratio, particularly through the sale of properties and the repayment of liabilities associated with this.

With regard to the second parameter, the CA Immo Group is focusing on secured property loans for financing with liabilities, which are usually taken out by special-purpose vehicles that hold the object in question. Generally speaking, secured financing offers more favourable conditions compared to unsecured financing, as these are structurally subordinated to the secured financing. Unsecured financing is only really available in the form of corporate bonds issued on the capital markets. There are no external ratings or explicit requirements, which have been stipulated by a third party, in respect of key parameters for managing the group's capital.

Net debt and the gearing ratio are other key figures for presenting the capital structure of the CA Immo Group; these have developed as follows:

€ 1,000 2010 2009

Interest-bearing liabilities Liabilities from convertible bonds 130,537.7 128,302.9 Liabilities from other bonds 345,027.1 344,222.4 Financial liabilities 1,649,651.6 1,503,944.7 Interest-bearing assets Securities – 3,853.5 – 6,948.2 Cash and cash equivalents – 354,763.8 – 497,199.3 Cash and cash equivalents with drawing restrictions – 43,571.6 – 24,374.7

Net debt 1,723,027.5 1,447,947.8 Shareholders' equity 1,659,938.5 1,729,160.1

Gearing ratio (Net debt/equity) 103.8% 83.7%

Cash and cash equivalents with drawing restrictions have been taken into account for net debt, as they are used to secure the repayments on financial liabilities.

196

CONSOLIDATED FINANCIAL STATEMENTS

2.5.8. Key figures per share Earnings per share The undiluted earnings per share (as shown in the consolidated income statement) is calculated by dividing the consolidated net income attributable to owners of ordinary shares in the parent company by the weighted average number of ordinary shares that were in circulation during the business year.

As at 31.12.2010 the share capital of CA Immo AG totalled € 638,713,556.20 and is broken down into 87,856,060 ordinary shares.

The undiluted earnings per share is calculated as follows:

2010 2009

Weighted number of shares in circulation pcs. 87,333,896 86,141,113 Consolidated net income € 1,000 45,415.3 – 76,915.0 Undiluted earnings per share € 0.52 – 0.89

In calculating the diluted earnings per share, the result attributable to the owners of the parent company is divided by the weighted average number of ordinary shares that were in circulation during the business year, plus the weighted average number of ordinary shares that would arise from the conversion of all financial instruments with a dilution effect into ordinary shares.

The diluted earnings per share is calculated as follows: 2010 2009

Weighted number of shares in circulation pcs. 87,333,896 86,141,113 Dilution effect: Convertible bond pcs. 11,657,829 0 Weighted number of shares in circulation pcs. 98,991,725 86,141,113

Consolidated net income attributable to the owners of the parent € 1,000 45,415.3 – 76,915.0 Dilution effect:

Effective interest rate on convertible bond € 1,000 7,803.5 0.0 FINANCIAL STATEMENTS CONSOLIDATED less taxes € 1,000 – 1,950.9 0.0 Consolidated net income attributable to the owners of the parent adjusted by dilution effect € 1,000 51,267.9 – 76,915.0

Diluted earnings per share € 0.52 – 0.89

Due to a negative net income in 2009, the diluted earnings per share in 2009 was equal to the undiluted earnings per share. The net income attributable to shareholders of the parent company adjusted for interest expenditure on the con-

vertible bond was € -75,811.1K in 2009.

197

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow per share The cash flow per share is calculated by dividing the operating cash flow and cash flow from operating activities by the weighted number of ordinary shares in circulation during the business year.

2010 2009

Weighted number of shares in circulation pcs. 87,333,896 86,141,113

Operating cash flow € 1,000 120,948.8 120,519.1 Operating cash flow per share € 1.38 1.40

Cash flow from operating activities € 1,000 172,032.9 130,758.2 Cash flow from operating activities per share € 1.97 1.52

2.5.9. Payroll In the 2010 business year, the CA Immo Group engaged an average of 268 employees (2009: 277) and 27 workers (2009: 20), of which on average 182 (2009: 189) were engaged as employees at the Vivico Group. In addition, there were on average 12 employees (2009: 11) and 17 workers (2009: 19) employed at proportionally consolidated companies.

2.5.10. Costs for the auditor In accordance with article 266 line 11 of the Austrian Commercial Code (UGB), the costs for the group auditor of CA Immo AG, Vienna, incurred during the business year must be disclosed. These are as follows:

€ 1,000 2010 2009

Auditing costs 256.2 289.8 Other consultancy services 132.0 132.0 Tax consultancy services 0.0 22.0 Other review services 107.0 44.0 495.2 487.8

2.5.11. Events after the close of the business year 2.5.11.1. Company fusions after the close of the business year

In January 2011, the deal to acquire 100 % of shares in Europolis AG, Vienna, was closed.

With the acquisition of the Europolis Group, the CA Immo Group has acquired properties focused on Eastern/South East Europe.

The provisional purchase price for the shares amounted to € 272,000.0K, which is still subject to the usual adjust-

ments that may arise from the statement of financial position as at 31.12.2010. As at the balance sheet date, 50 % of the

purchase price has already been paid. The remaining 50 % is deferred for a period of five years. The acquisition costs that have been incurred to date amount to € 545.5K. They appear as expenditure for the business year under legal, auditing and consultancy fees, as well as under indirect expenditure in the consolidated income statement.

On the basis of the information available relating to assets and liabilities acquired, the total assets of the CA Immo Group will increase by around € 1.6bn to € 6.1bn following the first-time consolidation of the Europolis Group. It can

be assumed that the desired equity ratio of the CA Immo Group of at least 35 % to 40 % will not be reached as a result of the one-off consolidation of the Europolis Group.

198

CONSOLIDATED FINANCIAL STATEMENTS

The proximity of the transaction to the balance sheet date and its complexity mean that it will only be possible to identify fully the assets and liabilities acquired, as well as to allocate the purchase price, during the first quarter of 2011. In line with expectations, there will be limited goodwill resulting from the purchase price allocation.

2.5.11.2. Other events In January 2011, shares in each of the proportionally consolidated companies in Slovakia and Serbia were sold to the previous joint venture partner.

The CA Immo Group signed an agreement to lease a new property in Berlin, which must first be constructed, in Janu- ary 2011. The tenancy begins in 2013 and runs for 10 years; it covers an area of over 25,000 sqm.

Beginning as at 1.8.2011, Post AG has signed a lease contract for a five-year period for the Erdberger Lände property (over 20,000 sqm).

These consolidated financial statements have been prepared by the Management Board on the date below. The individual and consolidated financial statements for CA Immobilien Anlagen Aktiengesellschaft will be presented to the Supervisory Board on 9.3.2011 for their approval.

Vienna, 28 February 2011

The Management Board

Bruno Ettenauer Wolfhard Fromwald Bernhard H. Hansen Chairman CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

199

CONSOLIDATED FINANCIAL STATEMENTS

ANNEX I TO THE CONSOLIDATED FINANCIAL STATEMENTS

SCOPE OF CONSOLIDATION

The following companies are included in the consolidated financial statements in addition to CA Immobilien Anlagen Aktiengesellschaft:

Company Registered Nominal Currency Interest in % Consolidatio office capital n method1)

Betriebsobjekte Verwertung Gesellschaft m.b.H. & Co. Leasing OG Vienna 4,135,427 EUR 100 FC BIL-S Superädifikatsverwaltungs GmbH Vienna 70,000 EUR 100 FC CA Immo BIP Liegenschaftsverwaltung GmbH Vienna 3,738,127 EUR 100 FC CA Immo CEE Beteiligungs GmbH Vienna 35,000 EUR 100 FC CA Immo Galleria Liegenschaftsverwaltung GmbH Vienna 35,000 EUR 100 FC CA Immo Germany Holding GmbH Vienna 35,000 EUR 100 FC CA Immo International Beteiligungsverwaltungs GmbH Vienna 35,000 EUR 100 FC CA Immo International Holding GmbH Vienna 35,000 EUR 100 FC CA Immo Investment Management GmbH Vienna 100,000 EUR 100 FC CA Immo LP GmbH Vienna 146,000 EUR 100 FC CA Immo ProjektentwicklungsgmbH Vienna 72,500 EUR 100 FC CA Immo Rennweg 16 GmbH Vienna 35,000 EUR 100 FC CA Immo-RI-Residential Property Holding GmbH Vienna 35,000 EUR 100 FC CA Immobilien Anlagen Beteiligungs GmbH & Co Finanzierungs OG Vienna 2,537,600 EUR 100 FC CAII Projektbeteiligungs GmbH Vienna 35,000 EUR 100 FC CAII Projektmanagement GmbH Vienna 35,000 EUR 100 FC CEE Hotel Development GmbH Vienna 70,000 EUR 50 PC CEE Hotel Management und Beteiligungs GmbH Vienna 35,000 EUR 50 PC I.N.A. Handels GmbH Vienna 37,000 EUR 100 FC omniCon Baumanagement GmbH Vienna 100,000 EUR 100 FC Parkring 10 Immobilien GmbH Vienna 35,000 EUR 100 FC SQUARE S Holding GmbH Vienna 35,000 EUR 100 FC UBM Realitätenentwicklung AG Vienna 5,450,463 EUR 25 EQ Blitz F07-neunhundert-sechzig-acht GmbH Frankfurt 25,000 EUR 100 FC Blitz F07-neunhundert-sechzig-neun GmbH Frankfurt 25,000 EUR 100 FC CA Immo Null Verwaltungs GmbH Frankfurt 25,000 EUR 100FC CA Immo Eins GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Zwei GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Drei GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Vier GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Fünf GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Sechs GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Sieben GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Acht GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Neun GmbH & Co. KG Frankfurt 25,000 EUR 100 FC CA Immo Zehn GmbH Frankfurt 25,000 EUR 100 FC CA Immo Elf Frankfurt 25,000 EUR 100 FC CA Immo GB GmbH Frankfurt 25,000 EUR 100 FC CA Immo GB Eins GmbH & Co. KG Frankfurt 25,000 EUR 94.9 FC CEREP Allermöhe GmbH Frankfurt 25,000 EUR 99.7 FC

1) FC full consolidation, PC proportional consolidation, EQ at equity consolidation

200

CONSOLIDATED FINANCIAL STATEMENTS

Company Registered Nominal Currency Interest Consolidation office capital in % method1)

CM Komplementär F07-888 GmbH & Co. KG Frankfurt 25,000 EUR 94.9 FC Vivico AG Frankfurt 50,000 EUR 100 FC Vivico Real Estate GmbH Frankfurt 5,000,000 EUR 99.7 FC CA Immo d.o.o. Belgrade 390,500 EUR 100 FC Log Center d.o.o. Belgrade 150,000 EUR 50 PC TM Immo d.o.o. Belgrade 5,250,000 EUR 100 FC BA Business Center a.s. Bratislava 7,503,200 EUR 100 FC Starohorska Development s.r.o. Bratislava 6,639 EUR 50 PC CA Immo Holding Hungary Kft. Budapest 13,000,000 HUF 100 FC Canada Square Kft. Budapest 12,500,000 HUF 100 FC Casa Property Kft. Budapest 51,310,000 HUF 100 FC Kapas Center Kft. Budapest 772,560,000 HUF 100 FC Kilb Kft. Budapest 30,000,000 HUF 100 FC R 70 Invest Budapest Kft. Budapest 5,250,000 HUF 100 FC Skogs Buda Business Center II. Kft. Budapest 327,000,000 HUF 100 FC

Váci 76 Kft. Budapest 3,100,000 HUF 100 FC CA Immobilien S.R.L. Bucharest 947,100 RON 100 FC Opera Center One S.R.L. Bucharest 2,531,150 RON 100 FC Opera Center Two S.R.L. Bucharest 4,700,400 RON 100 FC S.C. BBP Leasing S.R.L. Bucharest 14,637,711 RON 100 FC CA Immo Holding B.V. Hoofddorp 51,200,000 EUR 100 FC CA Immobilien Anlagen d.o.o. Ljubljana 50,075 EUR 100 FC CA IMMO NEW EUROPE PROPERTY FUND S.C.A. SICAR Luxembourg 139,670,000 EUR 100 FC CA Immo S.á.r.l. Luxembourg 33,000 EUR 100 FC OOO Saimir Moscow 10,000 RUB 100 FC 2P s.r.o. Pilsen 240,000 CZK 100 FC Europort Airport Center a.s. Prague 14,100,000 CZK 100 FC CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FCL Property a.s. Prague 2,000,000 CZK 100 FC Megapark o.o.d. Sofia 5,000 BGN 352) PC Office Center Mladost EOOD Sofia 5,000 BGN 100 FC Office Center Mladost 2 EOOD Sofia 5,000 BGN 100 FC Soravia Center OÜ Tallinn 100,000 EEK 40 EQ CA Betriebsobjekte Polska Sp.z.o.o. Warsaw 228,404,000 PLN 50 PC Doratus Sp.z.o.o. Warsaw 2,000,000 PLN 100 FC Mahler Property Services Sp.z.o.o. Warsaw 50,000 PLN 50 PC PBP IT-Services Sp.z.o.o. Warsaw 50,000 PLN 50 PC

1) FC full consolidation, PC proportional consolidation, EQ at equity consolidation 2) common control

201

CONSOLIDATED FINANCIAL STATEMENTS

As at 31.12.2010, the CA Immo Group held 99.7 % of the shares in Vivico Real Estate GmbH, Frankfurt am Main (or simply Frankfurt). The following subsidiaries, shares in joint ventures, and associated companies of Vivico Real Estate GmbH, Frankfurt, are therefore also included in the consolidated financial statements:

Company Registered Nominal Currency Interest Consolidation office capital in % method1)

Einkaufszentrum Erlenmatt AG Basle 100,000 CHF 50 PC Dorotheenhöfe Grundstücks GmbH & Co. KG Berlin 255,646 EUR 70 FC Dorotheenhöfe Grundstücksverwaltungs-GmbH Frankfurt 25,565 EUR 100 FC omniCon Gesellschaft für innovatives Bauen mbH Frankfurt 100,000 EUR 100 FC omniPro Gesellschaft für Projektmanagement mbH Frankfurt 25,000 EUR 100 FC VIADOR GmbH Frankfurt 100,000 EUR 70 FC Vivico Berlin Europaplatz 01 GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Europaplatz 01 Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Berlin Hallesches Ufer GmbH Frankfurt 25,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier 3 Beteiligungs GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier 4 Beteiligungs GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier 5 Beteiligungs GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier 6 Beteiligungs GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier 7 Beteiligungs GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier 8 Beteiligungs GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lehrter Stadtquartier 9 Beteiligungs GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lietzenburger Straße GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Berlin Lietzenburger Straße Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Berlin Schöneberger Ufer Beteiligungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Berlin Schöneberger Ufer GmbH & Co. KG Frankfurt 25,000 EUR 100 FC Vivico Berlin Schöneberger Ufer Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Berlin Unter den Linden Beteiligungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Berlin Unter den Linden GmbH & Co. KG Frankfurt 12,500 EUR 100 FC Vivico Berlin Unter den Linden Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Bauphase I GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Frankfurt Bauphase I Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Nord 1 Beteiligungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Nord 1 Projekt GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Frankfurt Nord 1 Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Nord 4 Projekt GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Frankfurt Nord 4 Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Tower 185 Beteiligungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Tower 185 Projekt GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Frankfurt Tower 185 Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Tower– 2-Besitz GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico Frankfurt Tower– 2-Betriebsgesellschaft mbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Tower– 2-Geschäftsführungs GmbH Frankfurt 25,000 EUR 100 FC Vivico Frankfurt Tower– 2-Verwaltungsgesellschaft mbH Frankfurt 25,000 EUR 100 FC Vivico Köln K1 GmbH Frankfurt 25,000 EUR 100 FC

1) FC full consolidation, PC proportional consolidation, EQ at equity consolidation

202

CONSOLIDATED FINANCIAL STATEMENTS

Company Registered Nominal Currency Interest Consolidation office capital in % method1)

Vivico Köln K2 GmbH Frankfurt 25,000 EUR 100 FC Vivico Köln K3 GmbH Frankfurt 25,000 EUR 100 FC Vivico München Ambigon Nymphenburg GmbH & Co. KG Frankfurt 5,000 EUR 100 FC Vivico München Ambigon Nymphenburg Verwaltungs GmbH Frankfurt 25,000 EUR 100 FC Vivico München Lokhalle Beteiligungs GmbH Frankfurt 25,000 EUR 100 FC Vivico München MI 1 - Arnulfpark Grundstücksverwertungs GmbH Frankfurt 25,000 EUR 100 FC Vivico München MK 2 - Arnulfpark Grundstücksverwertungs GmbH Frankfurt 25,000 EUR 100 FC Vivico München MK 6 - Arnulfpark Grundstücksverwertungs GmbH Frankfurt 25,000 EUR 100 FC Vivico München Perlach Grundstücksverwertungs GmbH Frankfurt 25,000 EUR 100 FC Concept Bau Premier Isargärten Verwaltungs GmbH Grünwald 25,000 EUR 33.32) PC Concept Bau Premier Vivico Isargärten GmbH & Co. KG Grünwald 15,000 EUR 33.32) PC Infraplan Vivico Isargärten GmbH & Co. KG Grünwald 15,000 EUR 33.32) PC Infraplan Vivico Isargärten Verwaltungs GmbH Grünwald 25,000 EUR 33.32) PC Isargärten Thalkirchen GmbH & Co. KG Grünwald 30,000 EUR 33.32) EQ SKYGARDEN Arnulfpark GmbH & Co.KG Grünwald 100,000 EUR 50 PC SKYGARDEN Arnulfpark Verwaltungs GmbH Grünwald 25,000 EUR 50 PC Congress Centrum Skyline Plaza GmbH & Co. KG Hamburg 25,000 EUR 50 PC Congress Centrum Skyline Plaza Verwaltung GmbH Hamburg 25,000 EUR 50 PC REC Frankfurt Objekt KG Hamburg 100,000 EUR 50 PC REC Frankfurt Objekt Verwaltungsgesellschaft mbH Hamburg 25,000 EUR 50 PC Mainzer Hafen GmbH Mainz 25,000 EUR 50 PC Zollhafen Mainz GmbH & Co. KG Mainz 1,200,000 EUR 50.12) PC EG Vivico MK 3 Arnulfpark GmbH & Co. KG Oberhaching 100,000 EUR 50 PC EG Vivico MK 3 Arnulfpark Verwaltungs GmbH Oberhaching 25,000 EUR 50 PC Boulevard Süd 4 GmbH & Co. KG Ulm 200,000 EUR 50 PC Boulevard Süd 4 Verwaltungs-GmbH Ulm 25,000 EUR 50 PC

1) FC full consolidation, PC proportional consolidation, EQ at equity consolidation 2) common control

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED

203

CONSOLIDATED FINANCIAL STATEMENTS

As at 31.12.2010, CA Immobilien Anlagen Aktiengesellschaft held 60 % of shares in CA IMMO NEW EUROPE PROP- ERTY FUND S.C.A. SICAR, Luxembourg. The following subsidiaries, shares in joint ventures and associated companies of CA IMMO NEW EUROPE PROPERTY FUND S.C.A. SICAR, Luxembourg, are therefore also included in the consolidated financial statements:

Company Registered Nominal Currency Interest in % Consolidatio office capital n method1)

CA Immo Sava City d.o.o. Belgrade 24,520,000 EUR 100 FC TC Investments Arad S.R.L. Bucharest 4,018,560 RON 95.9 FC Pannonia Shopping Center Kft. Györ 380,000,000 HUF 50 PC CAINE B.V. Hoofddorp 18,151 EUR 100 FC Pulkovo B.V. Hoofddorp 25,000 EUR 100 FC CAINE S.à.r.l. Luxembourg 12,500 EUR 100 FC K&K Investments S.R.L. Sibiu 21,609,000 RON 90 FC OAO Avielen AG St. Petersburg 370,000,000 RUB 25 EQ Poleczki Business Park Sp.z.o.o. Warsaw 3,936,000 PLN 50 PC

1) FC full consolidation, PC proportional consolidation, EQ at equity consolidation

204

CONSOLIDATED FINANCIAL STATEMENTS

DECLARATION OF THE MANAGING BOARD DUE TO SECTION 82 (4) OF THE AUSTRIAN STOCK EXCHANGE ACT

The managing board confirms to the best of their knowledge that the consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft, which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the CA Immo Group and that the group management report gives a true and fair view of the development and performance of the business and position of the CA Immo Group, together with a description of the principal risks and uncertainties the CA Immo Group faces.

Vienna, 28 February 2011

The Managing Board

Bruno Ettenauer Wolfhard Fromwald Bernhard H. Hansen (Chairman)

FINANCIAL STATEMENTS CONSOLIDATED

205

CONSOLIDATED FINANCIAL STATEMENTS

AUDITOR’S REPORT

Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of

CA Immobilien Anlagen Aktiengesellschaft, Vienna,

for the fiscal year from 1 January 2010 to 31 December 2010. These consolidated financial statements comprise the consolidated statement of financial position as at 31 December 2010, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the fiscal year ended 31 December 2010 and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements and for the Accounting System The Company’s management is responsible for the group accounting system and for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility and Description of Type and Scope of the Statutory Audit Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and with International Standards on Auditing, issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the Group as at 31 December 2010 and of its financial performance and its cash flows for the year from 1 January to 31 December 2010 in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU.

206

CONSOLIDATED FINANCIAL STATEMENTS

Report on the Management Report for the Group Pursuant to statutory provisions, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the other disclosures are not misleading with respect to the Company’s position. The auditor’s report also has to contain a statement as to whether the management report for the Group is consistent with the consolidated financial statements and whether the disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

In our opinion, the management report for the Group is consistent with the consolidated financial statements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.

Vienna, 28 February 2011

KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH

Mag. Walter Reiffenstuhl ppa Mag. Nikolaus Urschler Wirtschaftsprüfer Wirtschaftsprüfer

(Austrian Chartered Accountants)

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED This report is a translation of the original report in German, which is solely valid.

Publication of the consolidated financial statements together with our auditor’s opinion may only be made if the consolidated financial statements and the management report are identical with the audited version. The Auditor’s Report only refers to the complete German version of the consolidated financial statements and the management report. Sec- tion 281 paragraph 2 UGB (Austrian Commercial Code) applies.

207

FINANCIAL STATEMENTS OF THE CA IMMOBILIEN ANLAGEN AG FINANCIAL STATEMENTS OF CA IMMOBILIEN ANLAGEN AKTIENGESELLSCHAFT

BALANCE SHEET AS AT 31.12.2010

Assets 31.12.2010 31.12.2009

€ € 1,000 A. Fixed assets I. Intangible fixed assets 1. Rights 0.00 0.3 2. EDP software 70,698.92 56.2 3. Goodwill 214,479.75 429.0 285,178.67 485.5 II. Tangible fixed assets 1. Property and buildings 263,896,156.25 283,349.1 of which land value: € 52,092,393.33; 31.12.2009: € 57,567.1K 2. Other assets, office furniture and equipment 1,189,172.52 1,260.0 3. Prepayments made and construction in progress 616,650.66 255.2 265,701,979.43 284,864.3 III. Financial assets 1. Investments in affiliated companies 1,753,500,562.80 1,629,444.8 2. Loans to affiliated companies 194,630,490.34 111,093.5 3. Prepayments made on investments in affiliated companies 200,000.00 0.0 4. Investments in associated companies 124,919.72 7.3 5. Other loans 4,146,771.00 0.0 1,952,602,743.86 1,740,545.6 2,218,589,901.96 2,025,895.4

B. Current assets I. Receivables 1. Trade debtors 329,844.33 122.1 2. Receivables from affiliated companies 28,630,412.15 31,995.6 3. Other receivables 3,073,746.94 9,502.3 32,034,003.42 41,620.0

II. Other securities 3,853,474.84 6,948.2

III. Cash on hand, credit balances with banks 43,554,217.43 231,752.5 79,441,695.69 280,320.7

C. Deferred expenses 1,418,272.40 1,667.3

2,299,449,870.05 2,307,883.4

208

FINANCIAL STATEMENTS OF THE CA IMMOBILIEN ANLAGEN AG

Liabilities and shareholders‘ equity 31.12.2010 31.12.2009

€ € 1,000 A. Shareholders' equity I. Share capital 638,713,556.20 634,370.0 II. Tied capital reserves 820,184,324.63 868,545.0 III. Retained earnings Other reserves (free reserves) 0.00 6,276.9 IV. Net profit 0.00 5,896.7 of which profit carried forward: € 5,896,665.38; 31.12.2009: € 0.0K 1,458,897,880.83 1,515,088.6

B. Untaxed reserves Other untaxed reserves Special item for investment grants 78,627.00 81.0

C. Provisions 1. Provision for severance payment 611,927.00 489.0 2. Tax provisions 378,562.90 283.7 3. Other provisions 74,654,765.17 49,266.6 75,645,255.07 50,039.3

D. Liabilities 1. Bonds 485,000,000.00 485,000.0 of which convertible: € 135,000,000.00; 31.12.2009: € 135,000.0K 2. Liabilities to banks 144,499,223.66 152,544.4 3. Trade creditors 296,917.30 496.5 4. Payables to affiliated companies 125,369,213.43 95,653.2 5. Other liabilities 8,453,460.53 7,702.1 of which from taxes: € 262,952.4; 31.12.2009: € 2,107.8K of which in connection with social security: € 88,129.58; 31.12.2009: € 64.4K 763,618,814.92 741,396.2

E. Deferred income 1,209,292.23 1,278.3

THE CA IMMOBILIEN ANLAGEN AG FINANCIAL STATEMENTSOF

2,299,449,870.05 2,307,883.4

Contingent liabilities from guarantees 259,596,300.00 144,087.0

209

FINANCIAL STATEMENTS OF THE CA IMMOBILIEN ANLAGEN AG

INCOME STATEMENT FOR THE YEAR ENDED 31.12.2010

2010 2009 € € € 1,000 € 1,000

1. Gross Revenues 23,933,201.25 28,434.6 2. Other operating income a) Income from the sale of fixed assets except of financial assets 103,308.24 9,680.5 b) Income from the reduction of provisions 286,122.16 348.7 c) Other income 4,729,111.77 5,118,542.17 3,223.0 13,252.2 3. Staff expense a) Wages – 13,500.00 – 13.3 b) Salaries – 6,270,082.70 – 3,317.5 c) Expenses for severance payments and payments into staff welfare funds – 222,466.17 – 20.8 d) Expenses in connection with pensions – 153,074.56 – 108.2 e) Payments relating to statutory social security contributions as well as as payments dependent on remuneration and compulsory contributions – 1,165,621.59 – 699.8 f) Other social expenses – 28,887.78 – 7,853,632.80 – 36.1 – 4,195.7 4. Depreciation on intangible fixed assets and tangible fixed assets – 18,223,089.08 – 8,833.9 of which unscheduled depreciation in accordance with § 204 para. 2 Commercial Code: € 10,052,113.76; 2009: € 0.0K 5. Other operating expenses a) Taxes – 588,035.66 – 389.1 b) Other expenses – 19,748,122.07 – 20,336,157.73 – 13,774.8 – 14,163.9 6. Subtotal from S 1 to 5 (operating result) – 17,361,136.19 14,493.3 7. Income from investments 1,970,377.83 435,400.0 of which from affiliated companies: € 1,970,377.83; 2009: € 435,400.0K 8. Income from loans from financial assets 10,458,251.71 5,772.8 of which from affiliated companies: € 8,107,150.82; 2009: € 5,772.8K 9. Other interest and similar income 9,194,197.34 10,413.5 of which from affiliated companies: € 7,999,084.91; 2009: € 9,621.4K

210

FINANCIAL STATEMENTS OF THE CA IMMOBILIEN ANLAGEN AG

2010 2009 2010 € € €

10. Income from the disposal and appreciation of financial assets and short-term securities 37,064,785.06 23,729.3 of which from the disposal of own shares: € 0.00; 2009: 7,991.6K 11. Expenses for financial assets and for short-term securities, thereof – 55,634,135.60 – 440,357.2 a) Depreciation: € 54,769,305.56; 2009: € 438,940.7K b) Expenses from affiliated companies: € 52,410,016.49; 2009: € 439,664.4K 12. Interest and similar expenses – 56,297,631.49 – 54,684.4 of which relating to affiliated companies: € 4,061,283.40; 2009: € 10,468.1K 13. Subtotal from S 7 to 12 (financial result) – 53,244,155.15 – 19,726.0 14. Result from usual business activity – 70,605,291.34 – 5,232.7 15. Extraordinary income 5,464,722.79 0.0 16. Extraordinary expenses – 5,812,841.85 – 899.7 17. Extraordinary result – 348,119.06 – 899.7 18. Taxes on income 5,731,391.44 11,900.6 19. Annual loss/income – 65,222,018.96 5,768.2 20. Dissolution of untaxed reserves a) Valuation reserve based on special depreciation in accordance with § 10 a para. 3 of the Income Tax Act 0.00 126.2 b) Special item for investment grants 2,333.16 2.4 21. Dissolution of tied capital reserves 53,046,149.80 0.0 22. Dissolution of free reserves 6,276,870.62 0.0 23. Profit carried forward from the previous year 5,896,665.38 0.0 24. Net profit 0.00 5,896.8

FINANCIAL STATEMENTSOF THE CA IMMOBILIEN ANLAGEN AG FINANCIAL STATEMENTSOF

211

FINANCIAL STATEMENTS OF THE CA IMMOBILIEN ANLAGEN AG

OTHER INFORMATION

The annual financial statements of CA Immobilien Anlagen Aktiengesellschaft for the 2010 business year, prepared according to the Austrian accounting principles and for which an unqualified auditors’s opinion was expressed by KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH, will be submitted together with the relevant documents to the Austrian Register of Companies of the Commercial Court of Vienna, no. 75895k. These financial statements can be ordered free of charge from CA Immobilien Anlagen Aktiengesellschaft, 1030 Vienna.

Vienna, 28 February 2011

The Management Board

Bruno Ettenauer Wolfhard Fromwald Bernhard H. Hansen (Chairman)

212

TABLES AND ANALYSES TABLES AND ANALYSES

I. CA IMMO SHARE

1. REVIEW OF SHARE RATIOS

2010 2009 2008 2007 2006 Key figures per share Rental income / share 1.88 2.05 2.02 1.58 1.50 EBITDA/share 1.60 1.65 1.59 1.16 1.15 Operating cash flow / share 1.38 1.40 1.32 1.07 0.93

Undiluted earnings per share 0.52 – 0.89 – 2.73 0.67 1.17

Diluted earnings per share 0.52 – 0.89 – 2.73 0.67 1.17 EV/Share (31.12.) 32.02 24.77 22.75 27.96 32.40 NNNAV/share 18.95 18.47 20.50 22.51 21.13

Price (31.12.) / NNNAV per share – 1 % – 37.15 – 57.24 – 79.51 – 31.92 4.62

Multipliers

P/E ratio (KGV) 22.9 – 8.7 – 1.5 23.0 18.0 Price/cash flow 8.6 5.6 3.2 14.3 23.0 Ø EV/EBITDA 18.5 14.2 18.6 26.9 29.1

Valuation in €m market capitalisation (As of key date 31 December) 1,046.4 689.3 360.2 1,335.1 1,286.2 market capitalisation (annual average) 809.1 555.4 968.9 1,600.0 1,108.0 Equity (inc. minorities) 1,659.9 1,729.2 1,854.7 2,265.5 1,485.2 Ø Enterprise Value (EV) 2,575.7 2,020.5 2,560.0 2,439.6 1,721.4 Net asset value (NNNAV) 1,664.9 1,612.1 1,758.4 1,964.4 1,229.4

shares Number of shares (key date) pcs. 87,856,060 87,258,600 85,764,524 87,258,600 58,172,400 average number of shares pcs. 87,333,896 86,141,113 86,739,128 77,935,078 51,345,223 TABLES AND ANALYSES AND ANALYSES TABLES average price/share € 9.26 6.45 11.17 20.53 21.58 maximum rate € 11.95 11.88 15.88 25.15 22.11 Lowest price € 7.01 2.35 3.15 13.20 21.01

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TABLES AND ANALYSES

2. DEVELOPMENT OF SHARE CAPITAL

capital increase as at year nominal pcs. Price Share capital 1987 ATS 200,000,000 100% 200,000,000 1988 ATS 100,000,000 110% 300,000,000 1989 ATS 100,000,000 113% 400,000,000 ATS 100,000,000 125% 500,000,000 ATS 100,000,000 129% 600,000,000 ATS 200,000,000 135% 800,000,000 1990 ATS 200,000,000 138% 1,000,000,000 1991 ATS 250,000,000 140% 1,250,000,000 1996 100,000,000 165% 1,350,000,000 13,500,000 98,145,000 1999 € 10,905,000 1,500,000 14.40 €/share 109,050,000 2001 € 10,905,000 1,500,000 16.20 €/share 119,955,000 € 11,995,500 1,650,000 16.60 €/share 131,950,500 2002 € 13,195,050 1,815,000 17.10 €/share 145,145,550 € 14,514,555 1,996,500 17.30 €/share 159,660,105 2003 € 14,514,555 1,996,500 18.20 €/share 174,174,660 € 18,058,680 2,484,000 18.80 €/share 192,233,340 € 21,359,260 2,938,000 18.70 €/share 213,592,600 2004 € 21,359,260 2,938,000 19.45 €/share 234,951,860 € 23,495,186 3,231,800 19.70 €/share 258,447,046 2005 € 23,495,186 3,231,800 20.20 €/share 281,942,232 € 35,242,779 4,847,700 20.85 €/share 317,185,011 2006 € 105,728,337 14,543,100 21.15 €/share 422,913,348 2007 € 211,456,674 29,086,200 23.25 €/share 634,370,022 2008 € 0 0 0 634,370,022 2009 € 0 0 0 634,370,022 2010 € 4,343,534 597,460 7.27 €/share 1) 638,713,556 87,856,060

214

TABLES AND ANALYSES

II. PORTFOLIO ANALYSIS

1. OVERALL PORTFOLIO

For the presentation of the overall portfolio, see chapter „Property assets“.

2. CHANGE OF RENTAL INCOME (2010 VS. 2009)

€ m Austria Germany Eastern/South East Total Europe Resulting from indexation 0.8 0.5 1.2 2.4 Resulting from foreign currency conversion 0.0 0.0 0.0 0.0

Resulting from change in vacancy rate or reduced rentals – 5.7 – 3.2 – 1.0 – 9.9 Resulting from new acquisitions 0.0 0.1 0.0 0.1 Resulting from whole-year rental for the first time 0.0 0.0 4.6 4.6 Resulting from completed projects 0.0 1.3 0.5 1.7

Resulting from sale of properties – 2.2 – 9.4 0.0 – 11.5

Total change in rental income – 7.1 – 10.8 5.3 – 12.6

3. SEGMENT ANALYSIS – USABLE SPACE BY TYPE OF USE (INVESTMENT PROPERTIES AND PROPERTIES INTENDED FOR TRADING)

Austria Germany Eastern/South East Total Europe sqm Share in % sqm Share in % sqm Share in % sqm Share in %

Office 182,059 50 471,247 61 245,769 73 899,075 61 TABLES AND ANALYSES AND ANALYSES TABLES Hotel 32,287 9 4,497 1 39,122 12 75,906 5 retail sector 71,708 20 1,665 0 31,274 9 104,647 7 Commercial 47,961 13 290,954 38 21,084 6 360,000 24 Residental 29,613 8 2,283 0 0 0 31,896 2 other 160 0 1,291 0 128 0 1,578 0 Usable space 363,789 100 771,937 100 337,377 100 1,473,103 100

Number of parking spaces 4,234 8,391 5,922 18,546

215

TABLES AND ANALYSES

4. SEGMENT ANALYSIS – RENTAL INCOMES BY MAIN TYPE OF USE (INVESTMENT PROPERTIES AND PROPERTIES INTENDED FOR TRADING)

Austria Germany Eastern/South East Total Europe € 1,000 Share in % € 1,000 Share in % € 1,000 Share in % € 1,000 Share in %

Offices 15,701 40 58,126 82 35,851 79 109,679 71 hotel properties 4,031 10 152 0 8,158 18 12,341 8 Retail 1,844 5 0 0 682 1 2,527 2 Commercial and storage 2,565 7 9,701 14 0 0 12,267 8 Residental 9,891 25 60 0 0 0 9,951 6 other properties 4,851 12 2,989 4 826 2 8,666 6 Rental income 38,884 100 71,029 100 45,518 100 155,431 100

5. LARGEST TENANTS

Sector Region Share in 1)

Hesse (state of Germany) Public administration Germany 25% PWC Auditor Germany 4% Hennes & Mauritz GmbH Fashion retail Germany 4% BIM Berliner Immobilienmanagement GmbH Property administration Germany 4% Deutsche Bahn AG Public transportation Germany 3% Verkehrsbüro Hotellerie GmbH Hotel sector Austria 2% ECM Hotel Operations Europort s.r.o. (end-user Marriott) Hotel sector CEE 2% ECM Hotel Operations Plzen s.r.o. (end-user Marriott) Hotel sector CEE 1% Bombardier Transportation GmbH Transportation Systems Germany 1% Hewlett-Packard Magyarország Kft. IT CEE 1%

1) by rental income

6. LEASE ANALYSIS BASED ON EFFECTIVE RENTAL INCOME OF THE EXPIRING LEASE CONTRACTS

For the presentation of the lease analyses, see chapter „Property assets“.

216

TABLES AND ANALYSES

7. BOOK VALUES BY PROPERTY AREA AND SEGMENTS

€ m 31.12.2010 31.12.2010 before Decrease in value and Revaluation/Impairment revaluations

Investment properties Austria 703.7 684.1 19.6

Germany 1,334.9 1,337.2 – 2.3

Eastern/South East Europe 677.6 689.6 – 12.0 Investment properties 2,716.2 2,710.8 5.4

Investment properties under development

Austria 21.6 23.5 – 1.8 Germany 741.3 703.2 38.0

Eastern/South East Europe 27.7 28.0 – 0.4 Investment properties under development 790.6 754.7 35.8

properties intended for trading Austria 0.0 0.0 0.0

Germany 45.3 48.7 – 3.4 Eastern/South East Europe 0.0 0.0 0.0

properties intended for trading 45.3 48.7 – 3.4

Assets held for sale

Austria 0.3 – 0.3 0.6 Germany 41.2 36.2 4.9 Eastern/South East Europe 5.0 5.1 0.0 Assets held for sale 46.5 41.0 5.5

Own used properties Austria 10.4 10.4 0.0 TABLES AND ANALYSES AND ANALYSES TABLES Germany 3.2 3.2 0.0 Eastern/South East Europe 0.0 0.0 0.0 Own used properties 13.6 13.6 0.0

total portfolio 3,612.2 3,568.9 43.3 Thereof Austria 736.1 717.7 18.4 Germany 2,165.9 2,128.6 37.3

Eastern/South East Europe 710.3 722.7 – 12.4

217

TABLES AND ANALYSES

III. BALANCE-SHEET AND INCOME ANALYSIS (5-YEAR COMPARISON)

1. CORPORATE DATA /KEY FIGURES

2010 2009 2008 2007 2006

Income statement Rental income € m 164.3 177.0 175.3 123.3 77.1 EBITDA € m 139.4 141.9 137.8 90.7 59.2

Operating result (EBIT) € m 183.3 3.0 – 152.6 151.5 90.2

Net result before taxes (EBT) € m 75.8 – 134.5 – 295.4 106.2 84.3

Consolidated net income € m 43.8 – 134.7 – 294.9 84.0 66.4

attributable to the owners of the parent € m 45.4 – 76.9 – 237.1 52.1 60.3 Operating cash flow € m 120.9 120.5 114.6 83.4 48.0

Balance sheet Book value of properties € m 3,612.2 3,515.8 3,788.3 2,535.3 2,116.0 Total assets € m 4,379.5 4,310.6 4,394.8 3,823.4 2,712.8 Shareholders' equity € m 1,659.9 1,729.2 1,854.7 2,265.5 1,485.2 long-term and short-term liabilities to banks € m 2,125.2 1,976.5 1,923.7 1,407.6 1,087.5 Net debt € m 1,766.6 1,472.3 1,591.1 839.6 598.3

Key figures of property assets total effective rentable area (excluding parking spaces, excluding projects) sqm 1,476,802 1,518,180 1,528,837 1,118,778 995,437 Gross yield of properties (in relation to book values) % 5.8 6.4 6.3 5.8 6.6 Economic vacancy rate % 11.8 9.0 5.1 3.8 7.1 Capital expenditure € m 326.7 274.9 1,859.1 411.0 986.3

Other key data staff 31.12. 318 332 330 62 35 Gearing % 106 85 86 37 40 Equity ratio % 38 40 42 59 55 Equity-to-fixed-assets ratio % 44 49 49 71 68 Ø Enterprise Value (EV) € m 2,575.7 2,020.5 2,560.0 2,439.6 1,721.4 Ø Enterprise value/EBITDA 18 14 19 27 29 Net asset value (NNNAV) € m 1,664.9 1,612.1 1,758.4 1,964.4 1,229.4

ROE % 2.8 – 4.8 – 13.4 4.5 5.7

ROCE % 4.8 0.1 – 4.9 5.2 5.8

218

TABLES AND ANALYSES

2. CONSOLIDATED BALANCE SHEET

2010 2009 2008 2007 2006 € m % € m % € m % € m % € m %

Properties 3,520.4 80 3,386.3 79 3,619.9 82 2,535.3 66 1,318.3 49 Long-term assets 3,782.0 86 3,528.3 82 3,830.9 87 3,207.8 84 2,192.9 81

Short-term assets 597.5 14 782.4 18 563.9 13 615.6 16 519.9 19

Total assets 4,379.5 100 4,310.6 100 4,394.8 100 3,823.4 100 2,712.8 100

Shareholders' equity 1,659.9 38 1,729.2 40 1,854.7 42 2,265.5 59 1,485.2 55 Long term financial liabilities 1,888.3 43 1,852.2 43 1,834.9 42 1,156.6 30 1,036.3 38 Short term financial liabilities 236.9 5 124.3 3 88.9 2 251.1 7 51.2 2 Other liabilities 594.4 14 605.0 14 616.5 14 150.3 4 140.7 5

Total liabilities and shareholders’ equity 4,379.5 100 4,310.6 100 4,394.8 100 3,823.4 100 2,712.8 100

TABLES AND ANALYSES AND ANALYSES TABLES

219

TABLES AND ANALYSES

3. CONSOLIDATED INCOME STATEMENT

€ m 2010 2009 2008 2007 2006

Rental Income/Net sales 164.3 177.0 175.3 123.3 77.1 - Austria 39.0 46.2 45.2 41.1 38.6 - Germany 79.8 90.5 91.5 44.0 0.3 - Eastern/South East Europe 45.5 40.3 38.7 38.1 38.2 Gross revenues 313.0 288.7 298.8 144.6 92.6 Net operating income 164.9 164.0 160.2 108.7 66.6

result from property sales 3.4 9.2 11.7 5.7 7.3

EBITDA 139.4 141.9 137.8 90.7 59.2

Operating result (EBIT) 183.3 3.0 – 152.6 151.5 90.2

Result from revaluation 46.7 – 129.1 – 178.1 65.4 32.5

Net income before taxes/EBT 75.8 – 134.5 – 295.4 106.2 84.3

- actual tax – 25.9 – 38.7 – 48.2 – 2.3 – 3.9

- deffered taxes – 6.0 38.5 48.7 – 19.9 – 14.0

Income tax – 31.9 – 0.2 0.5 – 22.2 – 17.9

Consolidated net income 43.8 – 134.7 – 294.9 84.0 66.4

4. LIKE-FOR-LIKE ANALYSIS OF PROPERTIES THAT WERE ALREADY CORE AS AT 31 DECEMBER 2009

book values Annualised rental Gross yield Economic tenancy rate income m 2010 2009 2010 2009 2010 2009 2010 2009

Austria 702.1 675.0 36.0 42.9 5.1% 6.3% 82% 92% Germany 1,127.8 1,103.1 62.7 63.9 5.6% 5.8% 98% 98% Eastern/South East Europe 597.5 605.0 46.9 45.1 7.8% 7.4% 86% 82% Total 2,427.4 2,383.2 145,615 151,847 6.0% 6.4% 90% 91%

220

TABLES AND ANALYSES

5. CASH FLOW STATEMENT

€ m 2010 2009 2008 2007 2006

Cash flow from - business activities 172.0 130.8 169.7 47.4 37.3

- Investment activities – 343.7 72.8 – 127.8 – 1,203.0 – 251.7

- financing activities 29.1 – 26.5 89.1 1,232.5 224.1

Changes in cash and cash equivalents – 142.6 177.0 130.9 76.8 9.6 Cash and cash equivalents - beginning of the business year 497.2 321.4 192.5 70.7 60.9

- changes in the value of foreign currency 0.2 – 1.2 – 2.0 0.7 0.2 - the end of the business year 354.8 497.2 321.4 148.3 70.7

TABLES AND ANALYSES AND ANALYSES TABLES

221

TABLES AND ANALYSES

I. GENERAL OVERVIEW OF PROPERTIES

Plot size in 1,000 sqm Values in € 1,000

Country City Property Share Additions Plot 1) Office Retail Hotel (month/ space space space year)

Investment properties 1,772.5 894.1 104.6 75.9

Investment properties Austria 1020 Vienna Handelskai 388 /DBC 100% 09/00 9.4 20.8 1.5 0.0 1030 Vienna Erdberger Lände 26-32 100% 09/04 66.4 60.5 2.8 0.0 1030 Vienna Rennweg 16 (Hotel, vermietetes Büro) 100% 09/04 5.5 3.7 0.0 30.8 1030 Vienna Rüdengasse 11 100% 05/03 1.1 4.7 0.0 0.0 12/05 1030 Vienna Galleria 100% – 05/08 WE 11.7 14.4 0.0 1040 Vienna Wiedner Hauptstraße 23-25 100% 07/89 1.2 1.9 0.9 1.5 1040 Vienna Grosse Neugasse 36 / Schäffergasse 18-20 100% 12/89 1.0 0.0 0.6 0.0 1040 Vienna Rilkeplatz 5 100% 05/03 0.5 2.7 0.0 0.0 1040 Vienna Prinz-Eugen-Straße 72 100% 11/88 1.5 2.7 0.0 0.0 1040 Vienna Viktorgasse 26 100% 07/07 0.3 0.0 0.1 0.0 1060 Vienna Mariahilferstraße 17 100% 07/07 0.7 2.6 0.5 0.0 1090 Vienna Mariannengasse 14 100% 12/89 0.9 3.5 0.4 0.0 1090 Vienna Stroheckgasse 6 100% 07/07 0.2 0.0 0.0 0.0 1100 Vienna Erlachgasse 92b 100% 11/03 2.7 0.0 6.9 0.0 1110 Vienna Simmeringer Hauptstraße 99 100% 12/05 7.5 0.2 1.2 0.0 1120 Vienna Wolfganggasse 58-60 100% 11/00 7.3 18.4 0.4 0.0 1120 Vienna Schönbrunnerstraße 247 100% 12/05 1.0 2.9 0.0 0.0 1150 Vienna Linke Wienzeile 234/Storchengasse 1 100% 03/95 4.0 14.9 0.8 0.0 1150 Vienna Markgraf-Rüdiger-Str. 6-8 100% 01/02 2.6 3.3 0.4 0.0 1150 Vienna Sparkassaplatz 6 100% 05/03 0.8 2.2 0.2 0.0 1170 Vienna Geblergasse 22-26 100% 12/05 2.3 0.0 0.1 0.0 1180 Vienna Theresiengasse 100% 12/05 0.4 0.0 0.0 0.0 1190 Vienna Döblinger Hauptstraße 66 100% 05/89 4.2 0.7 0.1 0.0 1190 Vienna Heiligenstädter Straße 51-53 100% 05/89 1.1 1.7 1.3 0.0 1200 Vienna Klosterneuburgerstraße 23-27 100% 05/03 0.5 2.3 0.8 0.0 1200 Vienna Klosterneuburgerstraße 76 100% 07/07 0.0 0.0 0.8 0.0 1210 Vienna Felmayergasse 2 100% 12/05 6.9 0.0 3.4 0.0 1230 Vienna Zetschegasse 17 100% 11/03 12.2 3.0 5.2 0.0 1230 Vienna Breitenfurter Straße 142-144 100% 08/87 6.8 0.0 0.0 0.0 2201 Seyring Brünner Straße 160 100% 11/04 17.4 0.0 8.8 0.0 4020 Linz Schubertstraße 16-18 100% 02/90 3.1 0.2 0.0 0.0 4600 Wels Kaiser-Josef-Platz 49 100% 12/05 1.7 1.2 0.2 0.0 4614 Marchtrenk Freilinger Straße 44 100% 10/08 16.0 0.0 0.0 0.0 5020 Salzburg AVA Hof - Ferdinand Hanusch Platz 1 100% 01/02 3.6 5.4 3.0 0.0

222

TABLES AND ANALYSES

Residential Industrial Storage Others Total Acquisition IFRS-Book IFRS-Book Rental Level of Yield space space space space 2) cost as at value as at value as at income 2010 commercial in % 31.12.2010 31.12.2010 5) 31.12.2009 - annualised rental in % 2010 3)

31.6 41.4 303.1 1.6 1,452.3 2,922,295 2,716,211 2,383,151 157,077 88% 5.8%

0.0 0.0 1.0 0.0 23.3 52,862 37,900 37,431 1,563 69% 4.1% 0.0 13.9 5.0 0.0 82.1 126,257 104,600 104,100 2,716 36% 2.6% 0.0 0.0 0.7 0.0 35.1 83,150 78,554 76,037 4,155 93% 5.3% 0.0 0.0 0.0 0.0 4.7 9,032 7,950 7,900 559 100% 7%

1.9 0.0 1.2 0.0 29.3 90,350 87,900 76,477 4,064 88% 4.6% 1.6 0.0 0.0 0.0 5.8 8,048 10,800 9,900 517 100% 4.8% 3.2 0.0 0.0 0.0 3.8 7,351 7,750 7,400 412 96% 5.3% 0.0 0.0 0.0 0.0 2.7 6,638 6,850 6,700 451 100% 6.6% 0.0 0.0 0.1 0.0 2.8 7,992 6,400 5,900 373 99% 5.8% 1.1 0.0 0.2 0.0 1.4 3,076 2,400 2,414 130 95% 5.4% 0.2 0.0 0.2 0.0 3.5 17,092 17,500 16,680 862 100% 4.9% 0.0 0.0 0.0 0.0 3.9 8,839 8,670 8,500 600 97% 6.9% 1.2 0.0 0.0 0.0 1.2 3,238 3,510 3,417 171 100% 4.9% 0.0 0.0 0.0 0.0 6.9 12,735 11,100 10,900 794 100% 7.2% 2.1 0.0 0.0 0.0 3.5 3,791 3,953 3,269 260 100% 6.6% 0.0 0.0 2.0 0.0 20.8 40,969 26,400 25,860 1,960 94% 7.4% 0.0 0.0 0.0 0.0 2.9 7,770 8,410 8,155 575 97% 6.8% 0.0 0.0 1.6 0.0 17.3 43,133 31,800 30,300 2,098 89% 6.6% 1.7 0.0 0.1 0.0 5.4 6,672 6,960 6,900 502 92% 7.2% 0.0 0.0 0.0 0.0 2.4 4,211 3,610 3,570 300 100% 8.3% 3.6 0.0 0.0 0.0 3.6 7,405 8,097 7,692 439 87% 5.4% TABLES AND ANALYSES AND ANALYSES TABLES 1.1 0.0 0.0 0.0 1.1 1,198 1,558 0 75 75% 4.8% 1.5 0.0 0.0 0.0 2.3 3,245 5,590 5,300 282 100% 5.1% 0.0 0.0 0.0 0.0 3.0 5,036 3,810 3,660 202 68% 5.3% 0.4 0.0 0.0 0.0 3.5 6,233 5,940 5,800 369 83% 6.2% 0.8 0.0 0.0 0.0 1.6 3,004 3,200 3,086 179 88% 5.6% 0.0 0.0 0.0 0.0 3.4 2,156 2,297 2,176 176 100% 7.7% 0.0 0.0 0.0 0.0 8.2 10,044 8,590 8,500 632 85% 7.4% 0.0 4.5 0.0 0.0 4.5 4,585 4,240 4,200 375 100% 8.8% 0.0 0.0 4.3 0.0 13.1 14,346 17,000 16,900 1,226 100% 7.2% 2.7 0.0 0.0 0.0 2.9 6,249 5,600 5,400 311 93% 5.5% 0.0 0.0 0.0 0.0 1.4 2,204 2,241 2,326 128 80% 5.7% 0.0 8.4 0.0 0.0 8.4 5,133 2,600 3,260 175 100% 6.7% 0.2 0.0 0.1 0.2 8.9 21,629 25,900 23,100 1,361 98% 5.3%

223

TABLES AND ANALYSES

Plot size in 1,000 sqm Values in € 1,000

Country City Property Share Additions Plot 1) Office Retail Hotel (month/ space space space year)

5020 Salzburg Fürbergstraße 18-20 100% 12/05 0.0 2.9 3.0 0.0 5020 Salzburg Innsbrucker Bundesstraße 47 100% 12/05 0.0 2.9 0.0 0.0 5020 Salzburg Julius-Welser-Straße 15 100% 05/03 2.7 3.1 0.0 0.0 5020 Salzburg Ignaz-Harrer-Straße 59 100% 01/90 0.4 0.2 0.3 0.0 8055 Graz Puntigamer Straße 124 100% 04/06 11.2 0.0 0.0 0.0 9020 Klagenfurt Fallegasse 7 100% 12/05 9.7 0.0 3.8 0.0 realties with properties built on third land 321.9 0.0 0.0 0.0 properties with an IFRS Book value < 2 m Euro 71.2 2.0 9.8 0.0 Investment properties Austria total 608.1 182.1 71.7 32.3

Investment properties Germany 10115 Berlin Ämtergebäude Invalidenstraße 130/131 100% 01/08 1.4 0.4 0.0 0.0 10559 Berlin Spreebogen 100% 10/07 7.9 32.6 0.9 0.0 10719 Berlin Joachimstaler Strasse 20 100% 03/07 1.4 4.1 0.4 0.0 10719 Berlin Lietzenburger Strasse 75 100% 06/10 1.1 2.5 0.4 0.0 Kreuzberg, Königliche Direktion 10785 Berlin (Schöneberger Ufer) 100% 01/08 13.1 23.1 0.0 0.0 10963 Berlin Projektgesellschaft Hallesches Ufer 100% 01/08 13.9 11.5 0.0 0.0 12277 Berlin Marienfelde, Buckower Chaussee 43-58 100% 01/08 53.0 1.8 0.0 0.0 21035 Hamburg H&M Logistikcenter 100% 07/08 146.5 0.0 0.0 0.0 34117 Kassel Frankfurter Strasse 9 + 11 100% 01/07 13.3 28.3 0.0 0.0

34119 Kassel Friedrich-Ebert-Straße 104 - 106 100% 01/07 18.7 6.3 0.0 0.0 34121 Kassel Knorrstrasse 32, 34 100% 01/07 11.3 2.6 0.0 0.0 34123 Kassel Vor dem Osterholz 10-14 (Logistikpark) 100% 07/07 19.9 7.7 0.0 0.0 34369 Hofgeißmar Neue Straße 21 100% 01/07 8.9 2.9 0.0 0.0 34497 Korbach Medebacher Landstrasse 29 100% 01/07 8.6 3.6 0.0 0.0 34576 Homberg/Efze August-Vilmar-Strasse 20 100% 01/07 13.0 2.7 0.0 0.0 35037 Marburg Robert Koch Strasse 5-17 100% 01/07 27.9 19.7 0.0 0.0 35037 Marburg Universitätsstrasse 48-50 100% 01/07 10.0 6.7 0.0 0.0 35043 Marburg Raiffeisenstrasse 1 + 7 100% 01/07 20.7 8.2 0.0 0.0 Gutfleischstr. 1 / Marburger Str. 2-4 / Ostanlage 35390 Gießen 7, 15, 17, 19 100% 01/07 20.6 18.2 0.0 0.0 35392 Gießen Schubertstrasse 60 100% 01/07 74.4 20.3 0.0 0.0 35392 Gießen Leihgesterner Weg 52 100% 01/07 5.1 2.6 0.0 0.0 35394 Gießen Ferniestrasse 8 100% 01/07 29.9 13.2 0.0 0.0 35578 Wetzlar Schanzenfeldstrasse 8 100% 01/07 20.4 7.1 0.0 0.0 36041 Fulda Washingtonallee 1-6 / Severingstrasse 1-5 100% 01/07 48.0 18.2 0.0 0.0 36251 Bad Hersfeld Hubertusweg 19 100% 01/07 7.8 5.8 0.0 0.0 36251 Bad Hersfeld Kleine Industriestraße 3 100% 01/07 6.9 3.5 0.0 0.0 41460 Düsseldorf Neuss Sperberweg 6 100% 05/03 12.0 3.0 0.0 0.0 50668 Cologne Parkhaus RheinTriadem 100% 01/08 3.2 0.0 0.0 0.0 50668 Cologne Johannisstraße 60 und 64 100% 01/08 2.2 3.7 0.0 0.0 55252 Mainz-Kastel Wiesbadener Strasse 99-103 100% 01/07 52.8 23.6 0.0 0.0 60327 Frankfurt Europaallee Nord 4 100% 01/08 0.9 0.0 0.0 4.5 60327 Frankfurt Europaviertel, Tower 185 (Sockel) 100% 01/08 17.8 40.0 0.0 0.0 61169 Friedberg Homburger Str. 18 100% 01/07 8.2 2.7 0.0 0.0 61325 Bad Homburg Auf der Steinkaut 10-12 100% 01/07 6.4 3.6 0.0 0.0 64293 Darmstadt Steubenplatz 14 100% 01/07 5.6 5.4 0.0 0.0

224

TABLES AND ANALYSES

0.1 0.0 0.6 0.0 6.7 11,607 8,510 7,719 173 36% 2.0% 0.0 0.0 0.3 0.0 3.2 4,888 4,523 3,890 230 83% 5.1% 0.0 0.0 0.3 0.0 3.3 3,623 3,300 3,120 260 100% 7.9% 0.6 0.0 0.0 0.0 1.2 3,673 2,150 2,000 137 95% 6.4% 0.0 3.1 0.0 0.0 3.1 3,169 3,353 3,688 0 0% 0.0% 0.0 0.0 0.0 0.0 3.8 2,900 2,900 2,900 372 100% 12.8% 0.0 0.0 0.0 0.0 0.0 86,787 89,386 88,994 4,815 100% 5.4% 5.5 0.0 0.4 0.0 17.7 20,283 19,888 19,488 1,128 85% 5.7% 29.6 29.9 18.1 0.2 363.8 772,605 703,690 675,008 36,104 82% 5.1%

0.0 0.0 0.0 0.0 0.4 5,302 4,000 4,440 12 56% 0.3% 0.3 0.0 0.4 0.0 34.2 104,213 86,200 96,400 6,344 98% 7.4% 0.0 0.0 0.0 0.0 4.5 12,322 9,746 9,611 565 86% 5.8% 0.0 0.0 0.3 0.0 3.2 7,028 6,970 0 450 98% 6.5%

0.0 0.0 0.9 0.0 23.9 37,851 37,000 37,000 881 98% 2.4% 0.0 0.0 0.0 0.0 11.5 16,605 15,100 14,660 1,156 97% 7.7% 0.0 0.0 16.0 0.0 17.8 6,933 6,800 6,790 720 69% 10.6% 0.0 0.0 114.8 0.0 114.8 116,532 109,000 111,000 7,037 100% 6.5% 0.2 0.0 6.4 0.0 34.9 83,752 83,200 83,750 4,373 100% 5.3% 0.0 0.0 1.7 0.0 8.1 9,887 10,850 10,700 561 100% 5.2% 0.0 0.0 0.9 0.0 3.6 2,911 3,250 2,900 228 100% 7.0% 0.0 0.0 3.8 0.0 11.5 8,004 7,700 7,700 484 100% 6.3% 0.0 0.0 1.4 0.0 4.3 3,484 3,550 2,750 222 100% 6.3% 0.2 0.0 1.1 0.0 4.9 4,148 3,900 3,750 245 100% 6.3% 0.0 0.0 1.2 0.0 3.9 3,924 3,400 3,250 211 100% 6.2% 0.2 0.0 7.0 0.0 27.0 30,927 33,000 32,700 1,928 99% 5.8% 0.3 0.0 2.2 0.0 9.2 13,744 13,550 13,050 728 100% 5.4% 0.0 0.0 2.4 0.0 10.5 11,972 12,550 12,750 695 100% 5.5%

0.0 0.0 6.8 0.0 25.0 44,911 44,300 43,150 2,246 100% 5.1%

0.0 0.0 11.8 0.0 32.2 61,435 57,150 57,050 3,020 100% 5.3% AND ANALYSES TABLES 0.0 0.0 1.1 0.0 3.7 4,436 5,250 5,250 273 100% 5.2% 0.0 0.0 5.6 0.0 18.8 53,754 48,650 41,003 2,563 100% 5.3% 0.0 0.0 3.8 0.0 10.9 13,872 12,550 12,650 720 100% 5.7% 0.0 0.0 9.1 0.0 27.2 53,242 50,700 51,150 2,838 100% 5.6% 0.1 0.0 1.6 0.0 7.5 7,846 7,550 7,450 472 100% 6.2% 0.0 0.0 1.0 0.0 4.5 4,612 4,450 4,300 259 100% 5.8% 0.0 0.0 3.3 0.0 6.3 8,317 5,500 6,500 314 77% 5.7% 0.0 0.0 0.0 0.0 0.0 8,807 12,000 7,800 431 100% 3.6% 0.0 0.0 0.3 1.3 5.3 12,592 14,000 12,900 660 75% 4.7% 0.1 0.0 13.0 0.0 36.7 51,134 51,450 49,650 3,197 100% 6.2% 0.0 0.0 0.0 0.0 4.5 10,019 13,000 0 856 100% 6.6% 0.0 0.0 1.9 0.0 41.8 200,562 200,180 0 7,611 100% 3.8% 0.0 0.0 1.9 0.0 4.6 5,312 5,350 4,950 320 100% 6.0% 0.2 0.0 1.5 0.0 5.3 12,293 11,350 11,450 636 100% 5.6% 0.0 0.0 1.3 0.0 6.7 15,869 17,000 17,000 854 100% 5.0%

225

TABLES AND ANALYSES

Plot size in 1,000 sqm Values in € 1,000

Country City Property Share Addition Plot 1) Office Retail Hotel s (month/ space space space year)

64625 Bensheim Berliner Ring 35 100% 01/07 12.3 5.9 0.0 0.0 64720 Michelstadt Erbacher Strasse 46.47,48 100% 01/07 15.5 4.8 0.0 0.0 65185 Wiesbaden Kaiser-Friedrich-Ring 75 100% 01/07 12.3 12.4 0.0 0.0 65185 Wiesbaden Rheinstrasse 35-37 100% 01/07 4.2 6.5 0.0 0.0 65185 Wiesbaden Luisenplatz 5 + 10 100% 01/07 4.4 5.2 0.0 0.0 65187 Wiesbaden Mosbacher Strasse 55 100% 01/07 11.0 3.5 0.0 0.0 65195 Wiesbaden Schaperstrasse 16.19 100% 01/07 9.7 8.8 0.0 0.0 65197 Wiesbaden Willy-Brandt-Allee 20-22 100% 01/07 26.2 6.6 0.0 0.0 65197 Wiesbaden Willy-Brandt-Allee 2 100% 01/07 2.1 0.8 0.0 0.0 65201 Wiesbaden Schönbergstrasse 100 100% 01/07 110.2 33.8 0.0 0.0 65428 Rüsselsheim Eisenstrasse 60 100% 01/07 10.0 3.8 0.0 0.0 65428 Rüsselsheim Johann-Sebastian-Bach-Strasse 45 100% 01/07 6.7 3.5 0.0 0.0 65510 Idstein Gerichtstrasse 1 + 3 100% 01/07 4.4 2.5 0.0 0.0 65719 Hofheim Nordring 4-10 100% 01/07 12.0 6.7 0.0 0.0 65719 Hofheim Zeilsheimer Strasse 59 100% 01/07 11.2 2.2 0.0 0.0 70174 Stuttgart Heilbronner Straße 7/Jägerstraße 17 (ehem. BD) 100% 01/08 13.4 23.8 0.0 0.0 81243 Munich Erbbaurecht Berga, Bodenseestraße 229 100% 01/08 7.1 0.0 0.0 0.0 Investment properties Germany total 985.2 466.3 1.7 4.5

Investment properties Eastern and South East Europe BG Sofia IBC 100% 03/03 5.7 3.9 0.0 0.0 BG Sofia Europark Office Building 100% 05/06 2.9 6.9 0.0 0.0 CZ Prague Europort 100% 07/05 0.0 0.0 2.7 13.8 CZ Prague English International School Prague 100% 10/07 24.0 6.8 0.0 0.0 CZ Pilsen Diplomat Center Pilsen 100% 08/08 2.9 3.9 0.2 10.0 HU Budapest Víziváros Office Center 100% 09/05 4.0 11.7 0.4 0.0 HU Budapest R70 Office Complex 100% 06/03 3.9 15.9 0.5 0.0 HU Budapest Buda Business Center 100% 09/05 1.8 5.8 0.1 0.0 HU Budapest Canada Square 100% 07/05 1.4 5.0 0.0 0.0 HU Budapest Bártok Ház 100% 08/05 3.7 14.3 2.2 0.0 HU Budapest Capital Square 100% 01/07 8.5 27.9 1.7 0.0 HU Györ Duna Center 50% 09/08 21.3 0.0 8.2 0.0 PL Warsaw Wspolna 100% 11/01 0.0 6.2 0.7 0.0 PL Warsaw Warschau Financial Center 50% 09/05 0.6 23.3 0.7 0.0 RO Bukarest Opera Center 1 100% 09/03 2.6 10.3 0.7 0.0 RO Bukarest Opera Center 2 100% 03/04 0.8 3.2 0.0 0.0 RO Bukarest Bukarest Business Park 100% 10/05 15.7 23.8 0.1 0.0 SI Ljubljana Austria Trend Hotel Ljubljana 100% 04/05 2.9 0.0 0.0 15.4 SK Bratislava Bratislava Business Center 100% 01/00 1.6 7.5 0.8 0.0 SRB Belgrade Sava Business Center 100% 02/07 10.6 16.3 0.4 0.0 SRB Belgrade Belgrad Office Park 100% 12/07 0.0 18.9 0.0 0.0 Investment properties Eastern and South East Europe total 114.9 211.5 19.4 39.1

Investment properties Eastern and South East Europe new BG Sofia Megapark 35% 09/10 2.8 15.6 0.9 0.0 PL Warsaw Poleczki Business Park 50% 03/07 19.5 18.6 1.1 0.0 RO Sibiu Retail Park Sibiu 100% 12/07 42.0 0.0 9.8 0.0 Investment properties Eastern and South East Europe new total 64.3 34.2 11.8 0.0

226

TABLES AND ANALYSES

0.0 0.0 1.4 0.0 7.4 11,270 12,000 11,900 649 100% 5.4% 0.0 0.0 2.0 0.0 6.7 7,493 6,950 7,000 425 100% 6.1% 0.0 0.0 4.0 0.0 16.4 44,635 43,600 43,900 2,178 100% 5.0% 0.1 0.0 1.8 0.0 8.4 18,426 19,500 19,050 1,028 100% 5.3% 0.0 0.0 1.5 0.0 6.6 18,234 17,350 17,100 810 100% 4.7% 0.0 0.0 11.8 0.0 15.3 24,567 25,100 25,100 1,319 100% 5.3% 0.0 0.0 2.7 0.0 11.5 23,543 23,500 22,400 1,244 100% 5.3% 0.0 0.0 5.9 0.0 12.6 22,522 22,400 21,000 1,197 100% 5.3% 0.0 0.0 0.8 0.0 1.7 3,583 3,200 3,050 179 100% 5.6% 0.2 0.0 11.5 0.0 45.5 80,441 81,800 78,350 4,573 100% 5.6% 0.0 0.0 1.2 0.0 5.1 12,206 9,600 9,300 518 100% 5.4% 0.0 0.0 1.4 0.0 4.9 7,768 9,050 9,100 405 100% 4.5% 0.0 0.0 1.2 0.0 3.8 8,619 8,700 8,300 457 100% 5.3% 0.1 0.0 2.5 0.0 9.3 15,569 16,600 16,700 932 100% 5.6% 0.0 0.0 0.7 0.0 2.9 5,634 5,250 5,300 310 100% 5.9% 0.0 0.0 0.2 0.0 23.9 18,757 17,000 17,000 194 35% 1.1% 0.0 0.0 0.0 0.0 0.0 3,140 3,140 3,140 226 100% 7.2% 2.0 0.0 275.4 1.3 751.1 1,374,959 1,334,936 1,103,144 70,755 98% 5.3%

0.0 0.2 0.0 0.0 4.0 9,410 7,948 8,687 902 100% 11.3% 0.0 0.2 0.1 0.0 7.2 16,422 11,720 13,420 1,476 100% 12.6% 0.0 0.7 0.4 0.0 17.6 43,739 31,910 42,510 3,360 96% 10.5% 0.0 0.0 0.0 0.0 6.8 13,372 9,770 9,510 859 100% 8.8% 0.0 0.0 0.1 0.0 14.3 30,318 16,240 24,100 2,594 100% 16.0% 0.0 0.6 0.7 0.0 13.4 26,161 28,350 28,170 1,978 83% 7.0% 0.0 1.0 0.5 0.0 18.0 29,630 26,720 27,180 1,962 68% 7.3% 0.0 0.0 0.2 0.0 6.1 13,232 8,800 8,600 527 48% 6.0% 0.0 0.0 0.4 0.0 5.3 12,195 12,330 11,470 973 98% 7.9% 0.0 0.2 0.4 0.0 17.1 44,211 38,940 37,930 3,001 95% 7.7% 0.0 0.8 1.4 0.0 31.8 80,703 70,000 70,000 4,049 71% 5.8% 0.0 0.0 0.0 0.0 8.2 10,965 7,000 7,140 368 63% 5.3% 0.0 0.2 0.0 0.0 7.1 20,571 23,550 20,500 1,723 95% 7.3% AND ANALYSES TABLES 0.0 1.0 0.0 0.0 24.9 72,364 91,915 81,005 6,159 93% 6.7% 0.0 0.1 0.3 0.1 11.5 23,399 24,546 24,902 2,679 95% 10.9% 0.0 0.0 0.1 0.0 3.3 6,428 6,632 6,875 685 86% 10.3% 0.0 2.0 0.0 0.0 25.9 61,625 59,163 58,110 5,520 100% 9.3% 0.0 2.6 0.0 0.0 17.9 46,069 19,890 24,050 1,533 90% 7.7% 0.0 0.7 0.4 0.0 9.5 19,963 9,500 9,510 889 86% 9.4% 0.0 1.1 0.7 0.0 18.4 58,951 46,504 45,210 2,183 59% 4.7% 0.0 0.0 2.5 0.0 21.3 54,547 46,100 46,120 3,473 82% 7.5% 0.0 11.3 8.1 0.1 289.6 694,273 597,528 604,999 46,893 86% 7.8%

0.0 0.0 0.0 0.0 16.6 26,053 26,047 0 341 13% 1.3% 0.0 0.3 1.4 0.0 21.4 40,815 45,510 0 2,285 56% 5.0% 0.0 0.0 0.0 0.0 9.8 13,590 8,500 0 701 100% 8.2% 0.0 0.3 1.5 0.0 47.8 80,458 80,057 0 3,326 45% 4.2%

227

TABLES AND ANALYSES

Plot size in 1,000 sqm Values in € 1,000

Country City Property Share Additions Plot 1) Office Retail Hotel (month/ space space space year)

Investment properties Eastern and South East Europe total 179.2 245.8 31.3 39.1 Investment properties under development 3,395.9 122.9 6.5 10.5

Land reserve Austria 1120 Vienna Altmannsdorferstrasse 80-84 100% 07/07 3.9 1190 Vienna Muthgasse 42-48 100% 04/02 14.5 Land reserve Austria total 18.4

Actual projects Austria 1020 Vienna Rembrandtstraße 21 100% 07/07 0.7 0.0 0.0 5.0 1180 Vienna Theresiengasse 36 100% 12/05 0.0 0.0 0.0 0.0 Actual projects Austria total 0.7 0.0 0.0 5.0

Land reserve Germany 10557 Berlin Tiergarten, Lehrter Stadtquartier 5 100% 01/08 3.3 10557 Berlin Tiergarten, Lehrter Stadtquartier 6 100% 01/08 3.0 10557 Berlin Tiergarten, Lehrter Stadtquartier 7 100% 01/08 3.6 10557 Berlin Tiergarten, Lehrter Stadtquartier 8 100% 01/08 1.6 10557 Berlin Tiergarten, Lehrter Stadtquartier 9 100% 01/08 1.8 10557 Berlin Tiergarten, Invalidenstraße 51/52 am Kanal 100% 01/08 19.3 10963 Berlin Kreuzberg, Baufeld Urbane Mitte 100% 01/08 42.0 Lichterfelde, Landweg, Osdorfer Straße, 12207 Berlin Reaumurstraße 100% 01/08 965.2 13589 Berlin Tiergarten, Lehrter Gbf 100% 01/08 53.0 60327 Frankfurt Mannheimer Straße 35 (Khasana-Gelände) 100% 01/08 8.3 60327 Frankfurt Europaallee Nord 2 100% 01/08 6.1 60327 Frankfurt Europaallee Nord 3 100% 01/08 5.7 60327 Frankfurt UEC Tower 1 100% 01/08 3.9 60327 Frankfurt HYATT Tower 100% 01/08 4.6 Laim Landsberger Straße (ehemaliges 80335 Munich Teilprojekt 7) 100% 01/08 15.9 80939 Munich Bf Freimann I 100% 01/08 37.9 Properties with an IFRS Book value < 2 m Euro 328.5 Land reserve Germany total 1,503.7

Projects in advanced preparation Germany 10557 Berlin Tiergarten, Lehrter Stadtquartier 4 100% 01/08 3.2 50668 Cologne RheinForum (ehemaliges K1) 100% 01/08 5.2 60327 Frankfurt Europaviertel, Skyline Plaza 100% 01/08 18.1 60327 Frankfurt Europaviertel, Congress Center Skyline Plaza 100% 01/08 1.8 Erlenmatt - Shoppingcenter 4031 Basel (CH) Multidevelopment 100% 01/08 10.9 Projects in advanced preparation Germany total 39.2

228

TABLES AND ANALYSES

Residential Industrial Storage Others Total Acquisition IFRS-Book IFRS-Book Rental Level of Yield in % space space space space 2) cost as at value as at value as at income commercial 2010 3) 31.12.2010 31.12.2010 5) 31.12.2009 2010 - rental in % annualised

0.0 11.5 9.5 0.1 337.4 774,731 677,585 604,999 50,219 81% 7.4% 0.0 0.6 4.0 4.5 149.0 808,935 790,582 899,084 7,190

12,662 5,210 5,017 18 23,772 14,400 15,394 12 36,435 19,610 20,411 30

0.0 0.0 0.0 0.0 5.0 4,631 2,030 2,419 0 0.0 0.0 0.0 0.0 0.0 0 0 1,371 0 0.0 0.0 0.0 0.0 5.0 4,631 2,030 3,790 0

15,135 12,900 12,700 0 10,121 9,460 8,600 3 24,458 19,800 22,500 1 35,781 19,500 21,500 39 18,374 18,000 15,800 31 4,680 4,680 4,680 0 10,923 12,000 13,000 219

4,261 5,620 4,600 331 3,424 3,940 3,200 96 8,870 20,300 20,300 1,087 8,975 8,300 8,100 0 10,893 8,850 8,800 0 26,209 23,900 23,900 0 11,003 11,600 11,400 16

9,791 10,900 10,300 262

4,290 4,000 3,900 463 AND ANALYSES TABLES 1,244 1,860 26,537 88 208,432 195,610 219,817 2,637

10,421 11,900 11,100 0 6,271 6,300 5,200 1 31,463 28,600 25,000 0 1,279 500 0 0

17,841 15,100 12,800 0 67,275 62,400 54,100 2

229

TABLES AND ANALYSES

Plot size in 1,000 sqm Values in € 1,000

Country City Property Share Additions Plot 1) Office Retail Hotel (month/ space space space year)

Land development Germany 10963 Berlin Kreuzberg, Baufeld Flottwellpromenade 100% 01/08 25.0 10557 Berlin Europacity 100% 01/08 164.8 Berlin, Tiergarten, Europacity, Europaplatz, 10557 Berlin Baufeld 03 100% 01/08 3.0 Berlin, Tiergarten, Europacity, Europaplatz, 10557 Berlin Baufeld Rest 100% 01/08 12.6 Wedding, Brunnenstraße , Gbhf. Nordend, 13355 Berlin S-Bhf. Gesundbrunnen 100% 01/08 105.7 40210 Düsseldorf Harkortstraße 100% 01/08 13.1 40227 Düsseldorf Mindener Straße 100% 01/08 54.1 40545 Düsseldorf BelsenPark Oberkassel 100% 01/08 81.0 60327 Frankfurt Frankfurt am Main, Millenium Tower 100% 01/08 8.7 Schlossviertel Nymphenburg 80335 Munich (ehemaliges Teilprojekt 4) 100% 01/08 91.8 80939 Munich AW Freimann 50% 01/08 86.2 80993 Munich Eggartensiedlung 100% 01/08 150.3 80993 Munich Ladehof Moosach 100% 01/08 37.0 81241 Munich Gleisdreieck Pasing 100% 01/08 46.1 81673 Munich Bw München 4 100% 01/08 124.5 Feldkirchen 85622 b. München Naherholungsgebiet "Heimstettener See" 100% 01/08 452.0 Properties with an IFRS Book value < 2 m Euro 68.1 Land development Germany total 1,524.0

Actual projects Germany 10557 Berlin TOTAL Tower 100% 01/08 4.1 14.1 0.0 0.0 60327 Frankfurt Europaallee Nord 4 100% 01/08 0.0 0.0 0.0 0.0 60327 Frankfurt Europaviertel, Tower 185 100% 01/08 0.0 56.8 1.2 0.0 80335 Munich Schlossviertel Nymphenburg, Ambigon 100% 01/08 6.2 6.5 4.2 0.0 80335 Munich Arnulfpark, Skygarden 50% 01/08 6.1 15.7 0.0 0.0 Actual projects Germany total 16.4 93.0 5.4 0.0

Land reserve Eastern and South East Europe CZ Prague City Deco 100% 06/07 6.3 RO Arad Specialist retail center Arad 100% 12/07 31.7 RO Sibiu Retail Park Sibiu 100% 12/07 176.9 RU Moscow Maslov Tower 50% 12/06 3.1 SK Bratislava Sekyra Tower 50% 09/08 0.0 SRB Belgrade LogCenter Novi Banovci 50% 09/08 0.0 Land reserve Eastern and South East Europe total 217.9

Actual projects Eastern and South East Europe PL Warsaw Poleczki Business Park 50% 03/07 53.6 8.8 0.0 0.0 RU St. Petersburg Airport City St. Petersburg 4) 25% 12/07 15.6 6.5 0.7 5.4 SK Bratislava BBC 1 Plus 100% 01/00 6.3 14.6 0.4 0.0

230

TABLES AND ANALYSES

11,790 12,100 12,000 2 25,080 37,000 50,000 1,416

2,111 2,400 0 0

6,619 7,000 0 24

8,810 8,980 8,940 353 6,054 6,200 6,200 165 3,537 3,600 3,300 158 8,189 11,100 17,700 12 75,820 74,400 74,100 87

15,442 17,100 19,200 743 34,033 25,200 22,500 517 13,905 14,500 13,700 4 11,004 9,900 9,700 16 12,103 14,200 14,200 337 12,422 12,500 12,100 69

2,669 2,700 2,500 285 4,627 4,900 29,900 332 254,214 263,780 296,040 4,521

0.0 0.0 0.1 0.1 14.2 23,971 25,300 15,700 0 0.0 0.0 0.0 0.0 0.0 0 0 8,800 0 0.0 0.0 0.7 0.0 58.7 96,429 114,920 162,900 0 0.0 0.0 0.5 4.4 15.6 25,986 26,900 16,300 0 0.0 0.0 0.9 0.0 16.6 46,785 52,350 33,500 0 0.0 0.0 2.1 4.5 105.0 193,171 219,470 237,200 0

AND ANALYSES TABLES

0 0 0 0 2,890 2,100 2,100 0 22,151 14,000 19,500 0 0 0 5,039 0 0 0 1,250 0 0 0 2,070 0 25,042 16,100 29,959 0

0.0 0.6 1.1 0.0 10.4 13,047 10,382 37,767 0 0.0 0.0 0.0 0.0 12.6 0 0 0 0 0.0 0.0 0.8 0.0 15.9 6,688 1,200 0 0

231

TABLES AND ANALYSES

Plot size in 1,000 sqm Values in € 1,000

Country City Property Share Additions Plot 1) Office Retail Hotel (month/ space space space year)

Actual projects Eastern and South East Europe total 75.5 29.9 1.1 5.4 Own used properties 0.0 3.7 0.0 0.0

Own used properties Austria 1030 Vienna Rennweg 16 (Büros) 100% 09/04 0.0 2.9 0.0 0.0 Own used properties Austria 0.0 2.9 0.0 0.0

Own used properties Germany 10719 Berlin Joachimstaler Strasse 20 100% 03/07 0.0 0.8 0.0 0.0 Own used properties Germany 0.0 0.8 0.0 0.0

Property intended for trading 919.4 5.0 0.0 0.0

Properties intended for trading Germany 10829 Berlin Kolonnenstraße 30k, 30l 100% 01/08 6.0 0.0 0.0 0.0

12277 Berlin Motzener Straße 36 - 38 100% 01/08 38.4 1.4 0.0 0.0 80335 Munich Arnulfpark Baufeld MK 3 100% 01/08 3.9 0.0 0.0 0.0 80995 Munich Ratoldstraße (Bf Feldmoching) 100% 01/08 73.8 0.0 0.0 0.0 81379 Munich Isargärten Thalkirchen - Concept Bau 33% 06/09 1.5 0.0 0.0 0.0 81379 Munich Isargärten Thalkirchen - Infraplan 33% 06/09 1.7 0.0 0.0 0.0 Properties with an IFRS Book value < 2 m Euro 794.1 3.6 0.0 0.0 Properties intended for trading Germany 919.4 5.0 0.0 0.0

Properties intended for trading Eastern and South East Europe SK Bratislava Sekyra Tower 50% 09/08 0.0 0.0 0.0 0.0 Properties intended for trading Eastern and South East Europe 0.0 0.0 0.0 0.0

232

TABLES AND ANALYSES

0.0 0.6 1.9 0.0 38.9 19,735 11,582 37,767 0 0.0 0.0 0.0 0.0 3.7 15,602 13,575 14,248 0

0.0 0.0 0.0 0.0 2.9 11,601 10,416 10,959 0 0.0 0.0 0.0 0.0 2.9 11,601 10,416 10,959 0

0.0 0.0 0.0 0.0 0.8 4,001 3,159 3,289 0 0.0 0.0 0.0 0.0 0.8 4,001 3,159 3,289 0

0.3 0.0 15.5 0.0 20.8 52,692 45,339 47,015 949

0.0 0.0 0.0 0.0 0.0 3,930 3,400 3,930 291 100% 9% 0.2 0.0 6.8 0.0 8.3 7,035 5,800 6,480 121 57% 2% 0.0 0.0 0.0 0.0 0.0 9,530 9,530 9,097 0 0% 0% 0.0 0.0 0.0 0.0 0.0 5,075 5,075 5,000 28 100% 1% 0.0 0.0 0.0 0.0 0.0 3,629 3,629 1,702 0 0% 0% 0.0 0.0 0.0 0.0 0.0 4,519 4,519 2,422 0 0% 0% 0.1 0.0 8.8 0.0 12.5 18,974 13,386 17,133 510 21% 3.8% 0.3 0.0 15.5 0.0 20.8 52,692 45,339 45,765 949 32% 2.1%

0.0 0.0 0.0 0.0 0.0 0 – 0 1,250 0 0% 0% 0.0 0.0 0.0 0.0 0.0 0 – 0 1,250 0

AND ANALYSES TABLES

233

TABLES AND ANALYSES

Plot size in 1,000 sqm Values in € 1,000

Country City Property Share Additions Plot 1) Office Retail Hotel (month/ space space space year)

Assets held for sale 325.6 0.0 0.0 0.0

Assets held for sale Austria 8700 Leoben Göss - Wiese, Garten 100% 12/05 10.9 0.0 0.0 0.0 8720 Knittelfeld Landschachergasse 100% 12/05 4.6 0.0 0.0 0.0 Assets held for sale Austria total 15.6 0.0 0.0 0.0

Assets held for sale Germany 10963 Berlin Hallesches Ufer 100% 01/08 7.4 0.0 0.0 0.0 40545 Düsseldorf BelsenPark Oberkassel 100% 01/08 0.0 0.0 0.0 0.0 60327 Frankfurt Idsteiner Straße 100% 01/08 36.5 0.0 0.0 0.0 60327 Frankfurt Europaallee Süd 1 100% 01/08 7.9 0.0 0.0 0.0 CH– 4031 Basel Erlenmatt Baufeld J 100% 01/08 5.3 0.0 0.0 0.0 Assets held for sale Germany total 57.1 0.0 0.0 0.0

Assets held for sale Eastern and South East Europe SK Bratislava Sekyra Tower 50% 09/08 3.7 0.0 0.0 0.0 SRB Belgrade LogCenter Novi Banovci 50% 09/08 249.2 0.0 0.0 0.0 Assets held for sale Eastern and South East Europe total 252.9 0.0 0.0 0.0

234

TABLES AND ANALYSES

Residental Industrial Storage Others Total Acquisition IFRS-Book IFRS-Book Rental Level of Yield space space space space 2) cost as at value as at value as at income 2010 commercial in % 31.12.2010 31.12.2010 5) 31.12.2009 - annualised rental in % 2010 3)

0.0 0.0 0.0 0.0 0.0 49,902 46,509 0 14

0.0 0.0 0.0 0.0 0.0 363 206 0 0 0.0 0.0 0.0 0.0 0.0 230 130 0 0 0.0 0.0 0.0 0.0 0.0 593 336 0 0

0.0 0.0 0.0 0.0 0.0 1,400 1,050 0 14 0.0 0.0 0.0 0.0 0.0 16,712 22,610 0 0 0.0 0.0 0.0 0.0 0.0 982 2,320 0 0 0.0 0.0 0.0 0.0 0.0 16,406 13,600 0 0 0.0 0.0 0.0 0.0 0.0 2,982 1,580 0 0 0.0 0.0 0.0 0.0 0.0 38,482 41,160 0 14

0.0 0.0 0.0 0.0 0.0 8,558 2,680 0 0 0.0 0.0 0.0 0.0 0.0 2,269 2,333 0 0 0.0 0.0 0.0 0.0 0.0 10,826 5,013 0 0

TABLES AND ANALYSES AND ANALYSES TABLES

235

TABLES AND ANALYSES

Country Share Additions Plot 1) Office space Retail space Hotel space (month/year)

Properties sold in 2010 Austria 20.90.6 3.60.0 Germany 426.7 62.8 3.6 0.0 Eastern and South East Europe 0.0 0.0 0.0 0.0 Total properties sold 447.6 63.4 7.2 0.0

Investment properties 1,772.5 894.1 104.6 75.9 Investment properties Austria 608.1 182.1 71.7 32.3 Investment properties Germany 985.2 466.3 1.7 4.5 Investment properties Eastern and South East Europe 179.2 245.8 31.3 39.1 Investment properties Eastern and South East Europe 114.9 211.5 19.4 39.1 Investment properties Eastern and South East Europe new 64.3 34.2 11.8 0.0 Investment properties under development 3,395.9 122.9 6.5 10.5 Land reserve Austria 18.4 0.0 0.0 0.0 Actual projects Austria 0.7 0.0 0.0 5.0 Land reserve Germany 1,503.7 0.0 0.0 0.0 Projects in advanced preparation Germany 39.2 0.0 0.0 0.0 Land development Germany 1,524.0 0.0 0.0 0.0 Actual projects Germany 16.4 93.0 5.4 0.0 Land reserve Eastern and South East Europe 217.9 0.0 0.0 0.0 Actual projects Eastern and South East Europe 75.5 29.9 1.1 5.4 Own used properties 0.0 3.7 0.0 0.0 Own used properties Austria 0.0 2.9 0.0 0.0 Own used properties Germany 0.0 0.8 0.0 0.0 Property intended for trading 919.4 5.0 0.0 0.0 Properties intended for trading Germany 919.4 5.0 0.0 0.0 Properties intended for trading Eastern and South East Europe 0.0 0.0 0.0 0.0 Assets held for sale 325.6 0.0 0.0 0.0 Assets held for sale Austria 15.60.0 0.00.0 Assets held for sale Germany 57.1 0.0 0.0 0.0 Assets held for sale Eastern and South East Europe 252.9 0.0 0.0 0.0 Properties sold 447.6 63.4 7.2 0.0

Total 6,413.4 1,025.7 111.2 86.4 Total properties sold 6,861.0 1,089.1 118.4 86.4

1) Residental ownership (WE) 2) All plot sizes relate to the share held by CA Immo, CA Immo International or the CA Immo New Europe Property Fund in the property companies as shown in the column headed "Share". 3) Calculation Yield (gross yield): Rental income annualised/Book value IFRS 40

236

TABLES AND ANALYSES

12.5 0.0 0.2 0.0 16.8 0 0 28,956 0 0.0 0.0 18.6 0.1 85.1 0 0 143,308 0 0.0 0.0 0.0 0.0 0.0 0 0 0 0 12.5 0.0 18.8 0.1 102.0 0 0 172,264 0

31.6 41.4 303.1 1.6 1,452.3 2,922,295 2,716,211 2,383,151 157,077 88% 5.8% 29.6 29.9 18.1 0.2 363.8 772,605 703,690 675,008 36,104 82% 5.1% 2.0 0.0 275.4 1.3 751.1 1,374,959 1,334,936 1,103,144 70,755 98% 5.3% 0.0 11.5 9.5 0.1 337.4 774,731 677,585 604,999 50,219 81% 7.4% 0.0 11.3 8.1 0.1 289.6 694,273 597,528 604,999 46,893 86% 7.8% 0.0 0.3 1.5 0.0 47.8 80,458 80,057 0 3,326 45% 4.2% 0.0 0.6 4.0 4.5 149.0 808,935 790,582 899,084 7,190 0.0 0.0 0.0 0.0 0.0 36,435 19,610 20,411 30 0.0 0.0 0.0 0.0 5.0 4,631 2,030 3,790 0 0.0 0.0 0.0 0.0 0.0 208,432 195,610 219,817 2,637 0.0 0.0 0.0 0.0 0.0 67,275 62,400 54,100 2 0.0 0.0 0.0 0.0 0.0 254,214 263,780 296,040 4,521 0.0 0.0 2.1 4.5 105.0 193,171 219,470 237,200 0 0.0 0.0 0.0 0.0 0.0 25,042 16,100 29,959 0 0.0 0.6 1.9 0.0 38.9 19,735 11,582 37,767 0 0.0 0.0 0.0 0.0 3.7 15,602 13,575 14,248 0 0.0 0.0 0.0 0.0 2.9 11,601 10,416 10,959 0 0.0 0.0 0.0 0.0 0.8 4,001 3,159 3,289 0 0.3 0.0 15.5 0.0 20.8 52,692 45,339 47,015 949 0.3 0.0 15.5 0.0 20.8 52,692 45,339 45,765 949 0.0 0.0 0.0 0.0 0.0 0 0 1,250 0 0.0 0.0 0.0 0.0 0.0 49,902 46,509 0 14 0.0 0.0 0.0 0.0 0.0 593 336 0 0 0.0 0.0 0.0 0.0 0.0 38,482 41,160 0 14 TABLES AND ANALYSES AND ANALYSES TABLES 0.0 0.0 0.0 0.0 0.0 10,826 5,013 0 0 12.5 0.0 18.8 0.1 102.0 0 0 172,264 0

31.9 42.0 322.6 6.1 1,625.8 3,849,425 3,612,216 3,343,498 165,230 44.4 42.0 341.4 6.2 1,727.8 3,849,425 3,612,216 3,515,762 165,230

4) At equity interest 5) incl. assets held for sale

237

GLOSSAR

IMPORTANT FINANCIAL VOCABULARY

AD-HOC REPORT nia, Hungary, Czech Republic, Slovakia, Poland, Slovenia, Corporate information with a potential influence onthe Croatia. share price must be published by stock corporations in the form of ad-hoc reports pursuant to Article 48d of the CIS Stock Exchange Act. Issuers of financial instruments Abbreviation for Commonwealth of Independent States. quoted in official trading or registered for trading on the This CIS comprises the former Soviet Republics of Arme- unlisted securities market must disclose without delay nia, Azerbaijan, Kazakhstan, Kyrgyzstan, Belarus, Moldo- any information which might affect the financial and va, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbe- earnings position of the company or materially influence kistan. The Commonwealth was established in 1991 in the stock exchange prices of securities. The company order to strengthen economic, ecological, social and cul- concerned is itself responsible for the content of such tural cooperation, (re)create a common economic zone reports. Ad-hoc reports are meant to ensure that all and promote the coordination of foreign policy. market participants are equally well informed. COMPLIANCE CODE ATX (AUSTRIAN TRADED INDEX) Binding rules of conduct for issuers of securities which The Austrian Traded Index covers all blue chips listed primarily refer to the avoidance of conflicts of interests. on the Vienna Stock Exchange. It is the underlying value for options and futures. The ATX comprises 20 shares of CONSOLIDATED NET INCOME the prime segment (Prime Market) with the highest liqui- Income after taxes. dity and market capitalisation. CONVERTIBLE AUTHORISED CAPITAL A convertible bond (or equity-linked bond) is a struc- Authorisation granted by resolution of the General tured product whereby the issuer is entitled at the end of

Meeting to the Management Board for a maximum period the term either to repay 100 % of the face value or supply of five years to increase the share capital by the issue of a certain (predetermined) number of shares. The investor new shares up to a certain extent without further consul- also receives coupon payments during the term. tation of the General Meeting. CORPORATE GOVERNANCE BENCHMARK Compliance with the rules of proper and responsible External comparative value used to measure various management and control of a company. operating ratios, also used to measure the performance of various investment instruments. COUNTRY SPREADS Refers to the spread of risk in relation to national bonds. BUILDING ON THIRD-PARTY LAND Can be assessed either in direct comparison with the in- Building erected by a tenant or leaseholder on third- terest on government securities from another country party property and owned by the tenant or leaseholder. (Germany is usually chosen on account of the good credit rating and high liquidity of bonds) or in terms of the costs of insurance against failure (credit default swap). The CAPITALISATION RATE higher a country spread, the greater the probability of fail- Is used to determine the reselling price at the end of a ure of the government bonds in question from the view- planning period and is oriented towards the discount rate point of investors. determined for each project. COUPON CASH-FLOW A coupon is that part of a security that generally entitles The cash flow calculation provides an overview of the the bearer to redemption of a dividend (“dividend cou- liquid funds which have flowed into and out of a compa- pon”) or interest (“interest coupon”). In stock market jar- ny during the reporting period. gon, the term is also a synonym for the nominal interest

rate of a bond. A coupon of 6 % signifies that 6 % of the CEE face value will be paid as interest on the relevant coupon Abbreviation for Central and Eastern Europe, an area date. comprising the following states: Estonia, Latvia, Lithua-

238

GLOSSAR

CSR (COPORATE SOCIAL RESPONSIBILITY) ECONOMIC OCCUPANCY RATE Corporate social responsibility refers to a company’s = annualized rental income divided by the rental in- voluntary contribution towards sustainable development come at full use of capacity; is being used to get more that goes beyond legal compliance obligations. CSR in- precise information about the economic value of the volves responsible commercial dealings in respect of occupancy. actual business activity, the environment, employees and relevant interest groups. EPRA European Public Real Estate Association. DEFERRED TAXES The IFRS apply the “temporary concept“ by using the EPS (EARNINGS PER SHARE) balance sheet liability method. According to this method, Net income divided by the weighted number of shares. deferred tax assets and liabilities are to be calculated for all differences between the carrying values of assets or EQUITY CAPITAL liabilities recognised in the balance sheet and its respec- Money raised by the owner of a company for financing tive tax base. This difference is expected to increase or the business or kept in retained earnings (reinvestment of decrease the income tax charge in the future (temporary profits). (Share capital plus reserves plus net profit/loss). differences). Deferred tax assets and liabilities are not The equity capital on the balance sheet comprises also discounted. Deferred tax assets in relation to loss carry- minority interests. forwards must be recognised and treated like any other asset with respect to its realisation. EQUITY-TO-FIXED-ASSETS RATIO Equity capital in relation to fixed assets; indicates the DISCOUNT RATE extent to which the property assets and other fixed assets The discount rate is determined on the basis of the net are covered by the equity capital. initial returns of comparable property transactions in the market. EQUIVALENT YIELD The interest rate on which the capitalisation of rent is DIVERSIFICATION based. In the context of asset management, the spreading of investments over various types of investment with the ERV (ESTIMATED RENTAL VALUE) aim of minimising risks. In real estate investments, the Reflects the long-term rent attainable for a property and, spreading of the portfolio over various regions and sectors. accordingly, the assessed market rent for new lettings and re-letting. DIVIDEND Distribution of profit e.g. of a stock corporation to its EUROSOX shareholders. The amount of the dividend is dependent EuroSOX essentially refers to measures aimed at stan- on the profit of a company. dardising annual auditing requirements and thus enhancing the quality and authority of annual reporting in EBIT European countries. It comprises two directives adopted Earnings before interest and taxes. by the European Parliament and European Council in response to a series of international financial scandals EBITDA (the Statutory Audit and Company Reporting directives); Earnings before interest, taxes, depreciation and amorti- in Austria, these were enshrined in national law through sation. the Company Law Amendment Act 2008.

EBIT MARGIN EV (ENTERPRISE VALUE) EBIT in relation to sales, operating sales return. Defined as market capitalisation plus net debt.

EBT Earnings before taxes.

GLOSSAR

FAIR VALUE INVESTMENT HORIZON Price at which an asset is exchanged, or an obligation The period of time over which investors intend to invest settled, between knowledgeable, willing parties in an their capital. arm’s length transaction (market value). INVESTMENT INCOME TAX GEARING Interest and dividends earned from Austrian securities

Relation between net debt and equity capital. are subject to 25 % investment income tax (Kapitalertrags- teuer/KESt). GROSS YIELD OF PROPERTIES Annualised actual rents related to book values. ISCR (INTEREST SERVICE COVERAGE RATIO) Earnings before interest and taxes divided by the finan- IAS 40 cial cost. IAS 40 is an international accounting standard for companies. It regulates a sub-section of the International ISIN Financial Reporting System (IFRS), the carrying of International Security Identification Number. investment property and the relevant reporting rules.). MARKET CAPITALISATION IATX Number of shares issued multiplied by the market price The most important real estate securities listed on the = value of a company measured by the market value of its Vienna Stock Exchange are covered by the IATX (Immobi- shares.. lien-ATX), a benchmark index for Austrian property securities. MARKET PRICE (QUOTATION) Price of securities traded on the stock exchange. IFRS International Financial Reporting Standards. MARKET VALUE See fair value. INSIDER INFORMATION Contractually Information about confidential facts rela- NAV (NET ASSET VALUE) ting to Securities or issues which is liable to influence Equates to the equity capital on the balance sheet wi- considerably the price of a security if such information thout minority interests. becomes known to the public. The use of insider information e. g. for the purchase and sale of securities is forbid- NNNAV den and punishable under the Austrian Stock Exchange Calculation method according to EPRA; NAV adjusted Act.floor. for value adjustments (for financial instruments and development projects) and deferred taxes. INTEREST-RATE CAP Contractually agreed ceiling for floating-rate liabilities NAV/SHARE protecting borrowers against a rise in interest rates. A Net asset value of the company divided by the number lower limit to interest rates is an interest rate floor. of shares.

IMS (INTERNAL MONITORING SYSTEM) NET DEBT A company’s internal monitoring system comprises Balance of financial liabilities less liquid funds. systematic organisational measures and controls that promote compliance with guidelines and guard against PER damage that could be caused by a company’s own staff or The price/earnings ratio indicates how often the ear- malicious third parties. Such measures are based on te- nings per share go into the price of a stock. The PER is an chnical and organisational principles and include activi- important ratio for the valuation of shares. It is especially ties and devices aimed at internal monitoring (written meaningful in comparisons (historical, with competitors, instructions, reporting, dual verification principle, release with the overall market, etc.). provisions, etc.).

240

GLOSSAR

PERFORMANCE SHARE CAPITAL Total return of an investment. Considers changes in the Share capital of a stock corporation corresponding to the value of the capital employed, but also distributions and nominal value of all shares issued (minimum of € 70,000). their re-investment. SHAREHOLDER VALUE PERPETUAL LEASE Orientation towards shareholder value implies the con- Right applied in Poland that allows the use and sistent focus of managerial action on increasing the en- management of property belonging to the state for a speci- terprise value for shareholders. fied period of time (40 to 99 years). SOX DOCUMENTATION PRICE See EUROSOX. See market price. STAKEHOLDER VALUE PRICE/CASH FLOW RATIO In contrast to the shareholder value principle, which The price/cash flow ratio (PCR) is an important perform- regards the needs and expectations of stockholders in a ance ratio in which the current stock price is divided by company (e. g. the shareholders in a stock corporation) as the cash flow per share. The lower the PCR, the more at- the central concern, the stakeholder principle aims to tractive the respective securities. encompass the company in its overall socio-economic context and reconcile the needs of various stakeholder PRICE GAIN groups. The positive difference between the price at which securities were purchased and the price at which they are SWAP currently quoted or have been sold. Exchange of one security for another. There are three basic categories of swaps: interest-rate swaps, currency PRICE/NAV RATIO swaps and combined interest rate and currency swaps. The current market price of a share divided by the net The swap partners may e. g. exchange fixed for floating- asset value per share. rate obligations or loans in different currencies.

RE-INVESTMENT OF PROFITS TSR (TOTAL SHAREHOLDER RETURN) Profits earned are fully re-invested into the company, Formula for evaluating the performance of a share thus increasing its intrinsic value. investment.

RETURN UNDISCLOSED RESERVES Key ratio for the profit derived from an investment Market value less stated value of the property assets. (property).Total return of an investment in relation to the capital employed; specified in percent. In contrast to the VOLATILITY performance, value adjustments are not taken into A measure of the average fluctuation margin of a price account. within a certain period of time.

RISK MANAGEMENT VOTING RIGHT Systematic approach for identifying and assessing po- Right of the shareholder to vote for or against motions tential risks and chances as well as selecting and using presented at the General Meeting. Ownership of a share measures for coping with risks. usually carries the right to vote.

SEE YIELD Abbreviation for South Eastern Europe, an area compris- See return. ing the following states: Albania, Bosnia and Herzegovina, Bulgaria, Greece, Macedonia, Moldova, Montenegro, Romania, Serbia and Turkey.

CONTACT/DISCLAIMER/IMPRINT

CONTACT

CA Immobilien Anlagen AG Mechelgasse 1 1030 Vienna Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-510 [email protected] www.caimmoag.com

Investor Relations Free info hotline in Austria: 0800 01 01 50 Claudia Hainz Florian Nowotny Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]

Corporate Communications Susanne Steinböck Silke Gregoritsch Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]

DISCLAIMER IMPRINT

This Annual Report contains statements and forecasts which refer to Published by: CA Immobilien Anlagen AG the future development of CA Immobilien Anlagen AG and their 1030 Vienna, Mechelgasse 1 companies. The forecasts represent assessments and targets which the Text: Susanne Steinböck, Ursula Mitteregger, Company has formulated on the basis of any and all information Florian Nowotny, Claudia Hainz available to the Company at present. Should the assumptions on Graphic design and setting: WIEN NORD Werbeagentur, Silke Grego- which the forecasts have been based fail to occur, the targets not be ritsch met or the risks set out in the risk management report materialise, Photographs: CA Immo then the actual results may deviate from the results currently antic- Production: 08/16 ipated. This Annual Report does not constitute an invitation to buy or sell the shares of CA Immobilien Anlagen AG.

We ask for your understanding that gender-conscious notation in the texts of this Annual Report largely had to be abandoned for the sake of undisturbed readability of complex economic matters.

This Annual Report is printed on environmentally friendly and chlorine-free bleached paper.

242

INDEX INDEX

A I T Accounting principles ...... 116 Internal control system ...... 37 Taxes ...... 80, 81, 108, 126, 134, 146, 155, Auditor ..... 17, 18, 26, 37, 39, 41, 92, 100, Investor Relations ...... 17, 36, 88, 242 179, 183, 210, 211 198, 206, 207 Trading volume ...... 25 Auditor’s report ...... 206 K Transactions ... 14, 35, 37, 40, 54, 57, 83, Key figures ...... 218 97, 104, 108, 112, 114, 120-128, 134, 137, B 139-145, 151, 152, 155, 157, 159, 162, 174, Bond ...... 150 L 178, 181-189, 194, 195 Lease contract ...... 87, 199 C U Capital increase ...... 26, 108, 172, 180, 214 M Useful life ...... 130 Capital market ... 14, 28, 41, 86, 93, 96, 186 Management Board .... 14-18, 27, 35-45, 86, Cash flow .... 4, 5, 14, 16, 23, 62, 81, 83, 91, 88-92, 100, 133, 172, 193, 194, 199, 212 V 94, 97, 105, 108-110, 127, 137, 139, 141, Management report ..... 18, 37, 38, 92, 205, Vacancy rate . 52, 60, 61, 63, 69, 70, 76, 78, 151, 152, 156, 157, 178-183, 187-189, 198, 207 91, 127, 215, 218 213, 218 Market capitalisation ...... 5, 25, 213 Valuation result .. 15, 75, 76, 77, 80, 83, 97, Committees ...... 17 107, 157 Compliance ... 15, 17, 35-40, 84, 87, 89, 93, N 96, 97, 100, 126, 131, 132, 135- 139, Net asset value ...... 24, 85 Conflicts of interest ...... 35, 37 Net operating income ...... 78, 79, 81 Consolidated balance sheet ...... 219 NNNAV ...... 4, 5, 25, 84, 85, 213, 218 Consolidated income statement ...... 220 Consolidated net income . 4, 104, 105, 112, O 114, 197, 218, 220 Organisational structure ...... 47, 100 Corporate governance ...... 35 Outlook ...... 15, 24, 51, 86 Corporate social responsibility ...... 90, 239 Own shares ...... 27, 43, 108, 110, 155, 211 D P Debt 4, 24, 50, 51, 78, 83, 84, 86, 136, 144, Performance indicators ...... 91 173, 175, 178, 196, 218 Personnel ...... 17, 36, 38, 88, 89, 94 Deferred taxes ...... 5, 81, 85, 134, 163-165, Project development ... 22, 37, 39, 44, 48, Derivative financial instruments ... 97, 137, 62, 65-74, 87, 90, 91, 94, 96, 120, 186, 193 161, 181, 186, 189 Property assets ... 14, 22, 47, 59, 61, 65, 81, Development projects .. 14-17, 44, 47, 48, 82, 86, 94, 126, 129, 135, 147, 163, 168, 59, 62, 65-69, 72-75, 79, 81, 86, 89, 90, 96, 178, 179, 180, 218, 239 99, 129 Property valuation ...... 69, 75, 80, 97, 127 Directors' dealings ...... 43 Dividend policy ...... 25 R Real estate market ...... 16, 45, 52 E Research and development ...... 90 EBITDA ...... 4, 5, 41, 79, 81, 84, 104, 112, Revenue . 14, 15, 22, 23, 25, 53, 56, 58, 59, 114, 213, 218, 220 64, 79, 86, 94-99, 123, 127, 132, 139, 148 Economic data ...... 91 Risk management .... 16, 17, 37-39, 92, 93, Employees ... 18, 22, 35, 36, 38, 43, 45, 68, 97, 100, 137 88, 89, 91, 94, 113, 126, 133, 134, 173, 198, 239 S Segment reporting ...... 102 F Share .. 22, 25, 26, 107, 110, 124, 172, 194, Fair values ..... 81, 127, 128-131, 139, 149, 209, 213-216, 222, 224, 226, 228 156, 159, 162, 178 Share capital ..... 25, 27, 171, 172, 197, 238 Financial calendar ...... 29 Shareholder structure ...... 36 Financial liabilities ..... 4, 82-84, 94, 125, Shareholders' equity ...... 107 136, 137, 177, 178, 184-189, 194, 196, 219 Strategy .. 16, 37, 38, 41, 44, 48, 62, 83, 89, Financial result ...... 80, 104, 119, 139, 154 91, 137 Foreign currency translation ...... 121 Supplementary report ...... 87 Funds .. 42, 47, 54, 65, 81, 83, 88, 133- 136, Sustainability ... 16, 41, 44, 62, 67, 68, 89, 137, 139, 140, 147, 171, 180, 190, 193, 210 90, 96, 97